U.S. patent application number 10/871006 was filed with the patent office on 2004-11-25 for universal positive pay database method, system, and computer useable medium.
Invention is credited to Bozeman, William O..
Application Number | 20040236688 10/871006 |
Document ID | / |
Family ID | 26936036 |
Filed Date | 2004-11-25 |
United States Patent
Application |
20040236688 |
Kind Code |
A1 |
Bozeman, William O. |
November 25, 2004 |
Universal positive pay database method, system, and computer
useable medium
Abstract
A Universal Positive Pay Database (UPPD) method, system, and/or
computer useable medium to reduce financial transaction fraud. A
UPPD database is configured to store thereon transaction records
associated with financial transactions corresponding to customers
of the UPPD database. A particular financial transaction is
initiated between a payer and a payee by providing parameters
associated with the financial transaction to the UPPD database. An
Issue File is provided to the UPPD database that includes
parameters associated with the particular financial transaction. A
correspondence determination is made between the financial
transaction parameters from the Issue File and the financial
transaction parameters provided to the UPPD database at every point
along the financial transaction clearing process. The customer,
payer, payee, payee bank, drawee bank, and banking institutions
intermediate the payee bank and the drawee bank are able to access
the correspondence determination at every point along the financial
transaction clearing process.
Inventors: |
Bozeman, William O.; (St.
Petersburg, FL) |
Correspondence
Address: |
LITMAN LAW OFFICES, LTD.
P.O. BOX 15035 CRYSTAL CITY STATION
ARLINGTON
VA
22215
US
|
Family ID: |
26936036 |
Appl. No.: |
10/871006 |
Filed: |
June 21, 2004 |
Related U.S. Patent Documents
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Application
Number |
Filing Date |
Patent Number |
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10871006 |
Jun 21, 2004 |
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09983065 |
Oct 23, 2001 |
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6754640 |
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60243722 |
Oct 30, 2000 |
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Current U.S.
Class: |
705/42 |
Current CPC
Class: |
G06Q 20/4016 20130101;
G06Q 20/042 20130101; G06Q 20/04 20130101; G06Q 20/26 20130101;
G06Q 20/102 20130101; G06Q 20/023 20130101; G06Q 20/24 20130101;
G06Q 40/12 20131203; G06Q 20/108 20130101; G06Q 20/389 20130101;
G06Q 20/382 20130101; G06Q 20/10 20130101 |
Class at
Publication: |
705/042 |
International
Class: |
G06F 017/60 |
Claims
I claim:
1. A Universal Positive Pay Database (UPPD) method comprising:
providing a UPPD database configured to store thereon transaction
records associated with financial transactions corresponding to
customers of the UPPD database, each transaction record being
configured to include parameters associated with a certain
financial transaction; initiating a particular financial
transaction between a payer and a payee by providing parameters
associated with the particular financial transaction to the UPPD
database; providing an Issue File to the UPPD database, the Issue
File including parameters associated with the particular financial
transaction, the particular financial transaction being associated
with a drawee bank; determining correspondence between the
parameters associated with the particular financial transaction
from the Issue File and the parameters associated with the
particular financial transaction provided to the UPPD database to
initiate the particular financial transaction at every point along
a financial transaction clearing process; and facilitating access
to the correspondence determination by the customer, payer, payee,
payee bank, drawee bank, and banking institutions intermediate the
payee bank and the drawee bank at every point along a financial
transaction clearing process.
2. The UPPD method according to claim 1, further comprising the
steps: providing a computer useable medium; and providing a
computer device having a processor.
3. The UPPD method according to claim 1, wherein the providing a
computer device step further comprises: configuring the computer
device as a desktop computer, a laptop computer, a palmtop
computer, a network computer, a personal digital assistant (PDA),
an embedded device, or a smart phone.
4. The UPPD method according to claim 1, wherein the providing a
computer useable medium step further comprises: configuring the
computer useable medium as a non-volatile medium, a volatile
medium, or an installation medium.
5. The UPPD method according to claim 1, wherein the configuring
the computer useable medium step further comprises: configuring the
computer useable medium as a magnetic medium, hard disk, a solid
state disk, optical storage, Flash memory, electrically eraseable
programmable read only memory (EEPROM), or a parameter random
access memory (PRAM).
6. The UPPD method according to claim 1, wherein the configuring
the computer useable medium step further comprises: configuring the
computer useable medium as a dynamic RAM (DRAM), Direct Rambus.RTM.
DRAM (DRDRAM), double-data rate DRAM (DDR DRAM), double-data rate
synchronous DRAM (DDR SDRAM), enhanced DRAM (EDRAM), enhanced
synchronous DRAM (ESDRAM), extended data out (EDO) DRAM, burst EDO
(BEDO) DRAM, fast page mode DRAM (FPM DRAM), Rambus DRAM (RDRAM),
SyncLink.RTM. DRAM (SLDRAM), synchronous RAM (SRAM), synchronous
DRAM (SDRAM), synchronous graphic RAM (SGRAM), video RAM (VRAM), or
a window RAM (WRAM).
7. The UPPD method according to claim 1, wherein the configuring
the computer useable medium step further comprises: configuring the
computer useable medium as a CD-ROM, a floppy disk, or a removable
disk.
8. The UPPD method according to claim 1, wherein the providing a
UPPD database step further comprises providing a network
system.
9. The UPPD method according to claim 1, wherein the providing a
network system step further comprises: configuring the network
system as a local area network (LAN), a wide area network (WAN), an
intranet, an extranet, or the Internet.
10. The UPPD method according to claim 1, wherein the providing a
UPPD database step further configuring the UPPD database as a
plurality of separate or disparate databases interconnected through
the network system.
11. The UPPD method according to claim 1, further comprising
providing a transaction instrument configured to initiate a
financial transaction between a payer and a payee.
12. The UPPD method according to claim 1, wherein said providing a
transaction instrument step further comprises providing a
transaction instrument in the form of a paper/electronic check, a
debit card, a debit check, a credit card, or a smartcard.
13. The UPPD method according to claim 1, wherein said providing a
transaction instrument step further comprises providing a
transaction instrument in the form of a point of sale (POS)
terminal, a point of presentment (POP) terminal, a point of escheat
(POE) terminal, a point of data (POD) terminal, or an automated
teller machine (ATM).
14. The UPPD method according to claim 1, wherein said providing a
transaction instrument step further comprises: providing a
transaction instrument in the form of a personal digital assistant
(PDA), a telephone, a cellular telephone, a cordless telephone, a
pager, a watch, a television, a radio, a compact disc (CD) player,
a tape player, a copier, a facsimile machine.
15. The UPPD method according to claim 1, further comprising:
providing a telephone; and providing means for demodulating
transaction records from a telephone carrier signal.
16. The UPPD method according to claim 1, further comprising:
providing a telephone; and providing a voice recognition device
coupled to said telephone and said UPPD database.
17. The UPPD method according to claim 1, further comprising:
providing plastic card financial instruments selected from a group
consisting of credit cards, debit cards, stored value cards and
smart cards.
18. The UPPD method according to claim 1, further comprising:
providing an optical character recognition device.
19. The UPPD method according to claim 1, further comprising:
providing a magnetic-ink character recognition device.
20. The UPPD method according to claim 1, further comprising:
providing a digital technology recognition system.
21. The UPPD method according to claim 1, further comprising:
providing a fingerprint recognition system.
22. The UPPD method according to claim 1, further comprising:
providing an iris recognition system.
23. The UPPD method according to claim 1, further comprising:
providing a recognition system based on DNA technology.
24. The UPPD method according to claim 1, further comprising:
providing a matrix technology recognition system.
25. The UPPD method according to claim 1, wherein said initiating a
particular financial transaction step further comprises: providing
parameters associated with a check number, an issue date, a payee,
a routing number, and an account number.
26. The UPPD method according to claim 1, wherein said initiating a
particular financial transaction step further comprises: providing
parameters associated with a payer name, a payee name, payer
personal specifics, payee personal specifics, a transaction
instrument, and an account number.
27. The UPPD method according to claim 1, wherein said initiating a
particular financial transaction step further comprises: providing
parameters associated with an account number.
28. The UPPD method according to claim 27, wherein said providing
parameters associated with an account number step further
comprises: providing a checking account number, a savings account
nummber, a credit card account number, a money market account
number, a liability account number, a bills/payable account number,
an asset account number, an invoice/receivables account number, a
cash account number, an insurance policy account number, an account
number for a will, or an account number for a trust.
29. The UPPD method according to claim 1, wherein said initiating a
particular financial transaction step further comprises: providing
parameters associated with a personal identification number
(PIN).
30. The UPPD method according to claim 1, wherein said initiating a
particular financial transaction step further comprises: providing
parameters associated with a digital signature.
31. The UPPD method according to claim 1, wherein said initiating a
particular financial transaction step further comprises: providing
parameters associated with biometric data.
32. The UPPD method according to claim 31, wherein said providing
parameters associated with biometric data step further comprises:
providing parameters associated with DeoxyriboNucleic Acid (DNA),
facial structure, iris, retina, finger print, voice, or
signature.
33. The UPPD method according to claim 1, wherein said initiating a
particular financial transaction step further comprises: creating
the Issue File based on an Automated Clearing House (ACH) based
electronic check.
34. The UPPD method according to claim 1, wherein said initiating a
particular financial transaction step further comprises: creating
the Issue File based on an Electronic Funds Transfer (EFT) based
electronic check.
35. The UPPD method according to claim 1, wherein said initiating a
particular financial transaction step further comprises: creating
the Issue File based on an Internet initiated payment.
36. The UPPD method according to claim 1, wherein said initiating a
particular financial transaction step further comprises: creating
the Issue File in accordance with the Check Truncation Act.
37. The UPPD method according to claim.1, wherein said UPPD
software further causes the processor to carry out steps
comprising: processing incoming/outgoing data for the UPPD database
in accordance with CHECK 21.
38. The UPPD method according to claim 1, wherein said UPPD
software further causes the processor to carry out steps
comprising: searching and capturing check register information for
abandoned property subject to escheat.
39. The UPPD method according to claim 1, wherein said UPPD
software further causes the processor to carry out steps
comprising: automatically polling check register information for
storage on said UPPD database.
40. The UPPD method according to claim 1, wherein said UPPD
software further causes the processor to carry out steps
comprising: performing a reconciliation of transaction record
parameter information.
41. The UPPD method according to claim 1, wherein said UPPD
software further causes the processor to carry out steps
comprising: locating lost, stolen, misplaced items and items not
presented and that remain outstanding.
42. The UPPD method according to claim 1, wherein said UPPD
software further causes the processor to carry out steps
comprising: archiving and storing check register, matching data,
verification data, and authentication data for a predetermined
period of time.
43. The UPPD method according to claim 1, wherein said UPPD
software further causes the processor to carry out steps
comprising: performing a debit stall and stalled debit
procedure.
44. The UPPD method according to claim 1, wherein said UPPD
software further causes the processor to carry out steps
comprising: making a financial transaction history compilation for
a payer who executes financial transactions based upon transaction
record parameters.
45. The UPPD method according to claim 1, wherein said UPPD
software further causes the processor to carry out steps
comprising: compiling a behavior matrix for payers who execute
financial transactions based upon financial records associated with
the executed financial transactions.
46. The UPPD method according to claim 1, wherein said UPPD
software further causes the processor to carry out steps
comprising: authenticating, authorizing, and clearing financial
transactions executed by payers at a point of purchase, at a point
of presentment, and at a point of encashment.
47. The UPPD method according to claim 1, wherein said UPPD
software further causes the processor to carry out steps
comprising: enabling payers who execute financial transactions to
view their transaction records associated with the executed
financial transactions in real-time.
48. The UPPD method according to claim 1, wherein said UPPD
software further causes the processor to carry out steps
comprising: transmitting a web-based form to said database via the
Internet.
49. The UPPD method according to claim l wherein said UPPD software
further causes the processor to carry out steps comprising:
obtaining financial transaction issue data from a payer/payee
regarding a particular financial transaction; comparing the
obtained financial transaction issue data with financial
transaction issue data from a previously obtained data associated
with the particular financial transaction; identifying and sorting
out exception items for the obtained financial transaction issue
data that do not match with the financial transaction issue data
from the previously data associated with the particular financial
transaction; making a NO PAY/PAY decision regarding the obtained
financial transaction issue data; notifying the payer/payee of the
NO PAY/PAY decision that has been made regarding the obtained
financial transaction issue data; creating a payer/payee Issue
File; and uploading the Issue File to the UPPD database.
50. The UPPD method according to claim 1, wherein said UPPD
software further causes the processor to carry out steps
comprising: processing financial transactions to carry out deletes,
reversals, fraud filtering, stop pays, returns, or unauthorized
financial transactions.
51. The UPPD method according to claim 50, wherein said processing
financial transactions step further comprises: providing financial
transactions as automated clearing house, electronic funds
transfer, wire, or other money transfers.
52. The UPPD method according to claim 50, wherein said UPPD
software further causes the processor to carry out steps
comprising: providing a UPPD viewable or hard copy statement for
the payer/payee.
53. The UPPD method according to claim 1, wherein said UPPD
software further causes the processor to carry out steps
comprising: processing financial transactions associated with
payments from government, taxes, payer/payee, vendors, payroll,
accounts payables, or direct deposits.
54. The UPPD method according to claim 53, wherein said processing
financial transactions step further comprises: providing financial
transactions as automated clearing house, electronic funds
transfer, wire, or other money transfers.
55. The UPPD method according to claim 53, wherein said processing
financial transactions step further comprises: providing a UPPD
viewable or hard copy statement for the payer/payee.
56. The UPPD method according to claim 1, wherein said UPPD
software further causes the processor to carry out steps
comprising: processing account reconciliation reporting for stop
pays, reversed stop pays, voids, cancelled transactions, debit
stalls, pay or not paid, returns, or preauthorization on specific
transactions.
57. The UPPD method according to claim 56, wherein said processing
account reconciliation reporting step further comprises: providing
a UPPD viewable or hard copy statement for the payer/payee.
58. The UPPD method according to claim 1, wherein said UPPD
software further causes the processor to carry out steps
comprising: creating an Issue File image report from
archived/exchanged downloaded/uploaded images on exception items
for determination on pay or no pays.
59. The UPPD method according to claim 58, wherein said creating an
Issue File image report step further comprises: providing a UPPD
viewable or hard copy statement for the payer/payee.
60. The UPPD method according to claim 1, wherein said UPPD
software further causes the processor to carry out steps
comprising: creating an Issue File image report of an
electronically converted check or official item.
61. The UPPD method according to claim 60, wherein said creating an
Issue File image report step further comprises: archiving the image
report for substitute or replication by the UPPD system.
62. The UPPD method according to claim 1, wherein said UPPD
software further causes the processor to carry out steps
comprising: processing enabled electronic bill pay or collections
for accounts receivable, bill payment, lock box, and drop box.
63. The UPPD method according to claim 62, wherein said processing
enabled electronic bill pay step further comprises: providing a
UPPD viewable or hard copy statement for the payer/payee.
64. The UPPD method according to claim 1, wherein said UPPD
software further causes the processor to carry out steps
comprising: receiving origination attributes associated with a
transaction instrument; and storing the received origination
attributes in the UPPD database.
65. The UPPD method according to claim 64, wherein said providing
origination attributes step further comprises: providing
origination attributes including an origination entity, an
origination location, an origination date, an origination time,
security features, biometrics, origination personnel, or
origination shipping date.
66. The UPPD method according to claim 1, wherein said UPPD
software further causes the processor to carry out steps
comprising: enabling any transaction record for any financial
transaction to be processed with the UPPD software.
67. A Universal Positive Pay Database (UPPD) system comprising: a
computer useable medium; and a computer device having a processor;
wherein said computer useable medium carries thereon UPPD software,
which, when executed by the processor, causes the processor to
carry out steps comprising: providing a UPPD database configured to
store thereon transaction records associated with financial
transactions corresponding to customers of the UPPD database, each
transaction record being configured to include parameters
associated with a particular financial transaction; initiating a
particular financial transaction between a payer and a payee by
providing parameters associated with the particular financial
transaction to the UPPD database; providing an Issue File to the
UPPD database, the Issue File including parameters associated with
the particular financial transaction, the particular financial
transaction being associated with a drawee bank; determining
correspondence between the parameters associated with the
particular financial transaction from the Issue File and the
parameters associated with the particular financial transaction
provided to the UPPD database to initiate the particular financial
transaction at every point along a financial transaction clearing
process; and facilitating access to the correspondence
determination by the customer, payer, payee, payee bank, drawee
bank, and banking institutions intermediate the payee bank and the
drawee bank at every point along a financial transaction clearing
process.
68. The UPPD system according to claim 67, wherein said computer
device is a desktop computer, a laptop computer, a palmtop
computer, a network computer, a personal digital assistant (PDA),
an embedded device, or a smart phone.
69. The UPPD system according to claim 67, wherein said computer
useable medium is a non-volatile medium, a volatile medium, or an
installation medium.
70. The UPPD system according to claim 69, wherein said computer
useable medium is a magnetic medium, hard disk, a solid state disk,
optical storage, Flash memory, electrically eraseable programmable
read only memory (EEPROM), or a parameter random access memory
(PRAM).
71. The UPPD system according to claim 69, wherein said computer
useable medium is a dynamic RAM (DRAM), Direct Rambus.RTM. DRAM
(DRDRAM), double-data rate DRAM (DDR DRAM), double-data rate
synchronous DRAM (DDR SDRAM), enhanced DRAM (EDRAM), enhanced
synchronous DRAM (ESDRAM), extended data out (EDO) DRAM, burst EDO
(BEDO) DRAM, fast page mode DRAM (FPM DRAM), Rambus DRAM (RDRAM),
SyncLink.RTM. DRAM (SLDRAM), synchronous RAM (SRAM), synchronous
DRAM (SDRAM), synchronous graphic RAM (SGRAM), video RAM (VRAM), or
a window RAM (WRAM).
72. The UPPD system according to claim 69, wherein said computer
useable medium is a CD-ROM, a floppy disk, or a removable disk.
73. The UPPD system according to claim 67, further comprising a
network system.
74. The UPPD system according to claim 73, wherein said network
system is a local area network (LAN), a wide area network (WAN); an
intranet, an extranet, or the Internet.
75. The UPPD system according to claim 67, wherein said UPPD
database is configured as a plurality of separate or disparate
databases interconnected through the network system.
76. The UPPD system according to claim 67, further comprising a
transaction instrument configured to initiate a financial
transaction between a payer and a payee.
77. The UPPD system according to claim 76, wherein said transaction
instrument includes a paper/electronic check, a debit card, a debit
check, a credit card, or a smartcard.
78. The UPPD system according to claim 76, wherein said transaction
instrument includes a point of sale (POS) terminal, a point of
presentment (POP) terminal, a point of escheat (POE) terminal, a
point of data (POD) terminal, or an automated teller machine
(ATM).
79. The UPPD system according to claim 76, wherein said transaction
instrument includes a personal digital assistant (PDA), a
telephone, a cellular telephone, a cordless telephone, a pager, a
watch, a television, a radio, a compact disc (CD) player, a tape
player, a copier, a facsimile machine.
80. The UPPD system according to claim 67, further comprising: (a)
a telephone; and (b) means for demodulating transaction records
from a telephone carrier signal.
81. The UPPD system according to claim 67, further comprising: (a)
a telephone; and (b) a voice recognition device coupled to said
telephone and said UPPD database.
82. The UPPD system according to claim 67, further comprising:
plastic card financial instruments selected from a group consisting
of credit cards, debit cards, stored value cards and smart
cards.
83. The UPPD system according to claim 67, further comprising: an
optical character recognition device.
84. The UPPD system according to claim 67, further comprising: a
magnetic-ink character recognition device.
85. The UPPD system according to claim 67, further comprising: a
digital technology recognition system.
86. The UPPD system according to claim 67, further comprising: a
fingerprint recognition system.
87. The UPPD system according to claim 67, further comprising: an
iris recognition system.
88. The UPPD system according to claim 67, further comprising: a
recognition system based on DNA technology.
89. The UPPD system according to claim 67, further comprising: a
matrix technology recognition system.
90. The UPPD system according to claim 67, wherein said initiating
a particular financial transaction step further comprises:
providing parameters associated with a check number, an issue date,
a payee, a routing number, and an account number.
91. The UPPD system according to claim 67, wherein said initiating
a particular financial transaction step further comprises:
providing parameters associated with a payer name, a payee name,
payer personal specifics, payee personal specifics, a transaction
instrument, and an account number.
92. The UPPD system according to claim 67, wherein said initiating
a particular financial transaction step further comprises:
providing parameters associated with an account number.
93. The UPPD system according to claim 67, wherein said providing
parameters associated with an account number step further
comprises: providing a checking account number, a savings account
nummber, a credit card account number, a money market account
number, a liability account number, a bills/payable account number,
an asset account number, an invoice/receivables account number, a
cash account number, an insurance policy account number, an account
number for a will, or an account number for a trust.
94. The UPPD system according to claim 67, wherein said initiating
a particular financial transaction step further comprises:
providing parameters associated with a personal identification
number (PIN).
95. The UPPD system according to claim 67, wherein said initiating
a particular financial transaction step further comprises:
providing parameters associated with a digital signature.
96. The UPPD system according to claim 67, wherein said initiating
a particular financial transaction step further comprises:
providing parameters associated with biometric data.
97. The UPPD system according to claim 96, wherein said providing
parameters associated with biometric data step further comprises:
providing parameters associated with DeoxyriboNucleic Acid (DNA),
facial structure, iris, retina, finger print, voice, or
signature.
98. The UPPD system according to claim 67, wherein said initiating
a particular financial transaction step further comprises: creating
the Issue File based on an Automated Clearing House (ACH) based
electronic check.
99. The UPPD system according to claim 67, wherein said initiating
a particular financial transaction step further comprises: creating
the Issue File based on an Electronic Funds Transfer (EFT) based
electronic check.
100. The UPPD system according to claim 67, wherein said initiating
a particular financial transaction step further comprises: creating
the Issue File based on an Internet initiated payment.
101. The UPPD system according to claim 67, wherein said initiating
a particular financial transaction step further comprises: creating
the Issue File in accordance with the Check Truncation Act.
102. The UPPD system according to claim 67, wherein said UPPD
software further causes the processor to carry out steps
comprising: processing incoming/outgoing data for the UPPD database
in accordance with CHECK 21.
103. The UPPD system according to claim 67, wherein said UPPD
software further causes the processor to carry out steps
comprising: searching and capturing check register information for
abandoned property subject to escheat.
104. The UPPD system according to claim 67, wherein said UPPD
software further causes the processor to carry out steps
comprising: automatically polling check register information for
storage on said UPPD database.
105. The UPPD system according to claim 67, wherein said UPPD
software further causes the processor to carry out steps
comprising: performing a reconciliation of transaction record
parameter information.
106. The UPPD system according to claim 67, wherein said UPPD
software further causes the processor to carry out steps
comprising: locating lost, stolen, misplaced items and items not
presented and that remain outstanding.
107. The UPPD system according to claim 67, wherein said UPPD
software further causes the processor to carry out steps
comprising: archiving and storing check register, matching data,
verification data, and authentication data for a predetermined
period of time.
108. The UPPD system according to claim 67, wherein said UPPD
software further causes the processor to carry out steps
comprising: performing a debit stall and stalled debit
procedure.
109. The UPPD system according to claim 67, wherein said UPPD
software further causes the processor to carry out steps
comprising: making a financial transaction history compilation for
a payer who executes financial transactions based upon transaction
record parameters.
110. The UPPD system according to claim 67, wherein said UPPD
software further causes the processor to carry out steps
comprising: compiling a behavior matrix for payers who execute
financial transactions based upon financial records associated with
the executed financial transactions.
111. The UPPD system according to claim 67, wherein said UPPD
software further causes the processor to carry out steps
comprising: authenticating, authorizing, and clearing financial
transactions executed by payers at a point of purchase, at a point
of presentment, and at a point of encashment.
112. The UPPD system according to claim 67, wherein said UPPD
software further causes the processor to carry out steps
comprising: enabling payers who execute financial transactions to
view their transaction records associated with the executed
financial transactions in real-time.
113. The UPPD system according to claim 67, wherein said UPPD
software further causes the processor to carry out steps
comprising: transmitting a web-based form to said database via the
Internet.
114. The UPPD system according to claim 67, wherein said UPPD
software further causes the processor to carry out steps
comprising: obtaining financial transaction issue data from a
payer/payee regarding a particular financial transaction; comparing
the obtained financial transaction issue data with financial
transaction issue data from a previously obtained data associated
with the particular financial transaction; identifying and sorting
out exception items for the obtained financial transaction issue
data that do not match with the financial transaction issue data
from the previously data associated with the particular financial
transaction; making a NO PAY/PAY decision regarding the obtained
financial transaction issue data; notifying the payer/payee of the
NO PAY/PAY decision that has been made regarding the obtained
financial transaction issue data; creating a payer/payee Issue
File; and uploading the Issue File to the UPPD database.
115. The UPPD system according to claim 67, wherein said UPPD
software further causes the processor to carry out steps
comprising: processing financial transactions to carry out deletes,
reversals, fraud filtering, stop pays, returns, or unauthorized
financial transactions.
116. The UPPD system according to claim 115, wherein said
processing financial transactions step further comprises: providing
financial transactions as automated clearing house, electronic
funds transfer, wire, or other money transfers.
117. The UPPD system according to claim 115, wherein said
processing financial transactions step further comprises: providing
a UPPD viewable or hard copy statement for the payer/payee.
118. The UPPD system according to claim 67, wherein said UPPD
software further causes the processor to carry out steps
comprising: processing financial transactions associated with
payments from government, taxes, payer/payee, vendors, payroll,
accounts payables, or direct deposits.
119. The UPPD system according to claim 118, wherein said
processing financial transactions step further comprises: providing
financial transactions as automated clearing house, electronic
funds transfer, wire, or other money transfers.
120. The UPPD system according to claim 118, wherein said
processing financial transactions step further comprises: providing
a UPPD viewable or hard copy statement for the payer/payee.
121. The UPPD system according to claim 67, wherein said UPPD
software further causes the processor to carry out steps
comprising: processing account reconciliation reporting for stop
pays, reversed stop pays, voids, cancelled transactions, debit
stalls, pay or not paid, returns, or preauthorization on specific
transactions.
122. The UPPD system according to claim 121, wherein said
processing account reconciliation reporting step further comprises:
providing a UPPD viewable or hard copy statement for the
payee/payer.
123. The UPPD system according to claim 67, wherein said UPPD
software further causes the processor to carry out steps
comprising: creating an Issue File image report from
archived/exchanged downloaded/uploaded images on exception items
for determination on pay or no pays.
124. The UPPD system according to claim 123, wherein said creating
an Issue File image report step further comprises: providing a UPPD
viewable or hard copy statement for the payee/payer.
125. The UPPD system according to claim 67, wherein said UPPD
software further causes the processor to carry out steps
comprising: creating an Issue File image report of an
electronically converted check or official item.
126. The UPPD system according to claim 125, wherein said creating
an Issue File image report step further comprises: archiving the
image report for substitute or replication by the UPPD system.
127. The UPPD system according to claim 67, wherein said UPPD
software further causes the processor to carry out steps
comprising: processing enabled electronic bill pay or collections
for accounts receivable, bill payment, lock box, and drop box.
128. The UPPD system according to claim 127, wherein said
processing enabled electronic bill pay step further comprises:
providing a UPPD viewable or hard copy statement for the
payer/payee.
129. The UPPD system according to claim 67, wherein said UPPD
software further causes the processor to carry out steps
comprising: receiving origination attributes associated with a
transaction instrument to the UPPD database; and storing the
received origination attributes in the UPPD database.
130. The UPPD method according to claim 67, wherein said providing
origination attributes step further comprises: providing
origination attributes including an origination entity, an
origination location, an origination date, an origination time,
security features, biometrics, origination personnel, or
origination shipping date.
131. The UPPD system according to claim 67, wherein said UPPD
software further causes the processor to carry out steps
comprising: enabling any transaction record for any financial
transaction to be processed with the UPPD software.
132. A computer useable medium carrying Universal Positive Pay
Database (UPPD) software which, when executed by a processor,
causes the processor to carry out steps comprising: providing a
UPPD database configured to store thereon transaction records
associated with financial transactions corresponding to customers
of the UPPD database, each transaction record being configured to
include parameters associated with a particular financial
transaction; initiating a particular financial transaction between
a payer and a payee by a customer of the UPPD database by providing
parameters associated with the particular financial transaction to
the UPPD database; providing an Issue File to the UPPD database,
the Issue File including parameters associated with the particular
financial transaction, the particular financial transaction being
associated with a drawee bank; determining correspondence between
the parameters associated with the particular financial transaction
from the Issue File and the parameters associated with the
particular financial transaction provided to the UPPD database to
initiate the particular financial transaction at every point along
a financial transaction clearing process; and facilitating access
to the correspondence determination by the customer, payer, payee,
payee bank, drawee bank, and banking institutions intermediate the
payee bank and the drawee bank at every point along a financial
transaction clearing process.
133. The computer useable medium according to claim 132, in
combination with a computer device having a processor.
134. The combination according to claim 132, wherein said computer
device is a desktop computer, a laptop computer, a palmtop
computer, a network computer, a personal digital assistant (PDA),
an embedded device, or a smart phone.
135. The computer useable medium according to claim 132, wherein
said computer useable medium is a non-volatile medium, a volatile
medium, or an installation medium.
136. The computer useable medium according to claim 135, wherein
said computer useable medium is a magnetic medium, hard disk, a
solid state disk, optical storage, Flash memory, electrically
eraseable programmable read only memory (EEPROM), or a parameter
random access memory (PRAM).
137. The computer useable medium according to claim 135, wherein
said computer useable medium is a dynamic RAM (DRAM), Direct
Rambus.RTM. DRAM (DRDRAM), double-data rate DRAM (DDR DRAM),
double-data rate synchronous DRAM (DDR SDRAM), enhanced DRAM
(EDRAM), enhanced synchronous DRAM (ESDRAM), extended data out
(EDO) DRAM, burst EDO (BEDO) DRAM, fast page mode DRAM (FPM DRAM),
Rambus DRAM (RDRAM), SyncLink.RTM. DRAM (SLDRAM), synchronous RAM
(SRAM), synchronous DRAM (SDRAM), synchronous graphic RAM (SGRAM),
video RAM (VRAM), or a window RAM (WRAM).
138. The computer useable medium according to claim 135, wherein
said computer useable medium is a CD-ROM, a floppy disk, or a
removable disk.
139. The computer useable medium according to claim 132, in
combination with a network system.
140. The combination according to claim 139, wherein said network
system is a local area network (LAN), a wide area network (WAN), an
intranet, an extranet, or the Internet.
141. The combination according to claim 132, wherein said UPPD
database is configured as a plurality of separate or disparate
databases interconnected through the network system.
142. The computer useable medium to claim 132, in combination with
a transaction instrument configured to initiate a financial
transaction between a payer and a payee.
143. The combination according to claim 142, wherein said
transaction instrument includes a paper/electronic check, a debit
card, a debit check, a credit card, or a smartcard.
144. The combination according to claim 142, wherein said
transaction instrument includes a point of sale (POS) terminal, a
point of presentment (POP) terminal, a point of escheat (POE)
terminal, a point of data (POD) terminal, or an automated teller
machine (ATM).
145. The combination according to claim 142, wherein said
transaction instrument includes a personal digital assistant (PDA),
a telephone, a cellular telephone, a cordless telephone, a pager, a
watch, a television, a radio, a compact disc (CD) player, a tape
player, a copier, a facsimile machine.
146. The computer useable medium according to claim 132, in
combination with: (a) a telephone; and (b) means for demodulating
transaction records from a telephone carrier signal.
147. The computer useable medium according to claim 132, in
combination with: (a) a telephone; and (b) a voice recognition
device coupled to said telephone and said UPPD database.
148. The computer useable medium according to claim 132 in
combination with: plastic card financial instruments selected from
a group consisting of credit cards, debit cards, stored value cards
and smart cards.
149. The computer useable medium according to claim 132, in
combination with: an optical character recognition device.
150. The computer useable medium according to claim 132, in
combination with: a magnetic-ink character recognition device.
151. The computer useable medium according to claim 132, in
combination with: a digital technology recognition system.
152. The computer useable medium according to claim 132, in
combination with: a fingerprint recognition system.
153. The computer useable medium according to claim 132, in
combination with: an iris recognition system.
154. The computer useable medium according to claim 132, in
combination with: a recognition system based on DNA technology.
155. The computer useable medium according to claim 132, in
combination with: a matrix technology recognition system.
156. The computer useable medium according to claim 132, wherein
said initiating a particular financial transaction step further
comprises: providing parameters associated with a check number, an
issue date, a payee, a routing number, and an account number.
157. The computer useable medium according to claim 132, wherein
said initiating a particular financial transaction step further
comprises: providing parameters associated with a payer name, a
payee name, payer personal specifics, payee personal specifics, a
transaction instrument, and an account number.
158. The computer useable medium according to claim 132, wherein
said initiating a particular financial transaction step further
comprises: providing parameters associated with an account
number.
159. The computer useable medium according to claim 152, wherein
said providing parameters associated with an account number step
further comprises: providing a checking account number, a savings
account number, a credit card account number, a money market
account number, a liability account number, a bills/payable account
number, an asset account number, an invoice/receivables account
number, a cash account number, an insurance policy account number,
an account number for a will, or an account number for a trust.
160. The computer useable medium according to claim 132, wherein
said initiating a particular financial transaction step further
comprises: providing parameters associated with a personal
identification number (PIN).
161. The computer useable medium according to claim 132, wherein
said initiating a particular financial transaction step further
comprises: providing parameters associated with a digital
signature.
162. The computer useable medium according to claim 132, wherein
said initiating a particular financial transaction step further
comprises: providing parameters associated with biometric data.
163. The computer useable medium according to claim 162, wherein
said providing parameters associated with biometric data step
further comprises: providing parameters associated with
DeoxyriboNucleic Acid (DNA), facial structure, iris, retina, finger
print, voice, or signature.
164. The computer useable medium according to claim 132, wherein
said initiating a particular financial transaction step further
comprises: creating the Issue File based on an Automated Clearing
House (ACH) based electronic check.
165. The computer useable medium according to claim 132, wherein
said initiating a particular financial transaction step further
comprises: creating the Issue File based on an Electronic Funds
Transfer (EFT) based electronic check.
166. The computer useable medium according to claim 132, wherein
said initiating a particular financial transaction step further
comprises: creating the Issue File based on an Internet initiated
payment.
167. The computer useable medium according to claim 132, wherein
said initiating a particular financial transaction step further
comprises: creating the Issue File in accordance with the Check
Truncation Act.
168. The computer useable medium according to claim 132, wherein
said UPPD software further causes the processor to carry out steps
comprising: processing incoming/outgoing data for the UPPD database
in accordance with CHECK 21.
169. The computer useable medium according to claim 132, wherein
said UPPD software further causes the processor to carry out steps
comprising: searching and capturing check register information for
abandoned property subject to escheat.
170. The computer useable medium according, to claim 132, wherein
said UPPD software further causes the processor to carry out steps
comprising: automatically polling check register information for
storage on said UPPD database.
171. The computer useable medium according to claim 132, wherein
said UPPD software further causes the processor to carry out steps
comprising: performing a reconciliation of transaction record
parameter information.
172. The computer useable medium according to claim 132, wherein
said UPPD software further causes the processor to carry out steps
comprising: locating lost, stolen, misplaced items and items not
presented and that remain outstanding.
173. The computer useable medium according to claim 132, wherein
said UPPD software further causes the processor to carry out steps
comprising: archiving and storing check register, matching data,
verification data, and authentication data for a predetermined
period of time.
174. The computer useable medium according to claim 132, wherein
said UPPD software further causes the processor to carry out steps
comprising: performing a debit stall and stalled debit
procedure.
175. The computer useable medium according to claim 132, wherein
said UPPD software further causes the processor to carry out steps
comprising: making a financial transaction history compilation for
a payer who executes financial transactions based upon transaction
record parameters.
176. The computer useable medium according to claim 132, wherein
said UPPD software further causes the processor to carry out steps
comprising: compiling a behavior matrix for payers who execute
financial transactions based upon financial records associated with
the executed financial transactions.
177. The computer useable medium according to claim 132, wherein
said UPPD software further causes the processor to carry out steps
comprising: authenticating, authorizing, and clearing financial
transactions executed by payers at a point of purchase, at a point
of presentment, and at a point of encashment.
178. The computer useable medium according to claim 132, wherein
said UPPD software further causes the processor to carry out steps
comprising: enabling payers who execute financial transactions to
view their transaction records associated with the executed
financial transactions in real-time.
179. The computer useable medium according to claim 132, wherein
said UPPD software further causes the processor to carry out steps
comprising: transmitting a web-based form to said database via the
Internet.
180. The computer useable medium according to claim 132, wherein
said UPPD software further causes the processor to carry out steps
comprising: obtaining financial transaction issue data from a
payer/payee regarding a particular financial transaction; comparing
the obtained financial transaction issue data with financial
transaction issue data from a previously obtained data associated
with the particular financial transaction; identifying and sorting
out exception items for the obtained financial transaction issue
data that do not match with the financial transaction issue data
from the previously data associated with the particular financial
transaction; making a NO PAY/PAY decision regarding the obtained
financial transaction issue data; notifying the payer/payee of the
NO PAY/PAY decision that has been made regarding the obtained
financial transaction issue data; creating a payer/payee Issue
File; and uploading the Issue File to the UPPD database.
181. The computer useable medium according to claim 132, wherein
said UPPD software further causes the processor to carry out steps
comprising: processing financial transactions to carry out deletes,
reversals, fraud filtering, stop pays, returns, or unauthorized
financial transactions.
182. The computer useable medium according to claim 181, wherein
said processing financial transactions step further comprises:
providing financial transactions as automated clearing house,
electronic funds transfer, wire, or other money transfers.
183. The computer useable medium according to claim 181, wherein
said processing financial transactions step further comprises:
providing a UPPD viewable or hard copy statement for the
payer/payee.
184. The computer useable medium according to claim 132, wherein
said UPPD software further causes the processor to carry out steps
comprising: processing financial transactions associated with
payments from government, taxes, payer/payee, vendors, payroll,
accounts payables, or direct deposits.
185. The computer useable medium according to claim 184, wherein
said processing financial transactions step further comprises:
providing financial transactions as automated clearing house,
electronic funds transfer, wire, or other money transfers.
186. The computer useable medium according to claim 184, wherein
said processing financial transactions step further comprises:
providing a UPPD viewable or hard copy statement for the
payer/payee.
187. The computer useable medium according to claim 132, wherein
said UPPD software further causes the processor to carry out steps
comprising: processing account reconciliation reporting for stop
pays, reversed stop pays, voids, cancelled transactions, debit
stalls, pay or not paid, returns, or preauthorization on specific
transactions.
188. The computer useable medium according to claim 187, wherein
said processing account reconciliation reporting step further
comprises: providing a UPPD viewable or hard copy statement for the
payer/payee.
189. The computer useable medium according to claim 132, wherein
said UPPD software further causes the processor to carry out steps
comprising: creating an Issue File image report from
archived/exchanged downloaded/uploaded images on exception items
for determination on pay or no pays.
190. The computer useable medium according to claim 189, wherein
said creating an Issue File image report step further comprises:
providing a UPPD viewable or hard copy statement for the
payer/payee.
191. The computer useable medium according to claim 132, wherein
said UPPD software further causes the processor to carry out steps
comprising: creating an Issue File image report of an
electronically converted check or official item.
192. The computer useable medium according to claim 191, wherein
said creating an Issue File image report step further comprises:
archiving the image report for substitute or replication by the
UPPD system.
193. The computer useable medium according to claim 132, wherein
said UPPD software further causes the processor to carry out steps
comprising: processing enabled electronic bill pay or collections
for accounts receivable, bill payment, lock box, and drop box.
194. The computer useable medium according to claim 193, wherein
said processing enabled electronic bill pay step further comprises:
providing a UPPD viewable or hard copy statement for the
payer/payee.
195. The computer useable medium according to claim 132, wherein
said UPPD software further causes the processor to carry out steps
comprising: processing enabled electronic bill pay or collections
for accounts receivable, bill payment, lock box, and drop box.
196. The computer useable medium according to claim 195, wherein
said processing enabled electronic bill pay step further comprises:
providing a UPPD viewable or hard copy statement for the
payer/payee.
197. The computer useable medium according to claim 132, wherein
said UPPD software further causes the processor to carry out steps
comprising: receiving origination attributes associated with a
transaction instrument to the UPPD database; and storing the
received origination attributes in the UPPD database.
198. The computer useable medium according to claim 132, wherein
said providing origination attributes step further comprises:
providing origination attributes including an origination entity,
an origination location, an origination date, an origination time,
security features, biometrics, origination personnel, or
origination shipping date.
199. The computer useable medium according to claim 132, wherein
said UPPD software further causes the processor to carry out steps
comprising: enabling any transaction record for any financial
transaction to be processed with the UPPD software.
Description
CROSS-REFERENCE TO RELATED APPLICATIONS
[0001] This application is a continuation in part of U.S. patent
application Ser. No. 09/983,065, filed Oct. 23, 2001, which claims
the benefit of U.S. Provisional Patent Application Serial No.
60/243,722, filed Oct. 30, 2000, each of which is incorporated
herein by reference.
BACKGROUND OF THE INVENTION
[0002] 1. Field of the Invention
[0003] The present invention relates to a Universal Positive Pay
Database method, system, and/or computer useable medium to reduce
check fraud and verify checks, other financial instruments and
documents.
[0004] 2. Description of Related Art
[0005] Paper checks have been ingrained into our society for over
one hundred years. Many young people take their first steps into
financial adulthood with the opening of their first checking
account. Consumers continue to write an average of 25 checks per
month. Paper checks give consumers the ability to make purchases
and live day to day without carrying around cash. It gives them the
freedom to make purchases before deposits are recorded at their
bank and earn interest before withdrawals. Unfortunately, all this
freedom comes with a price--Check Fraud. With the increase in home
computer technology and high quality laser printers, paper checks
can be easily created, even to the point of fooling so called
experts in the field. Law enforcement agencies have reported that
check fraud is the most under-reported white color crime. Estimates
range as high as 50 billion annually. Out of the 180 million checks
written daily, 1.2 million are fraudulent. That is less than 1%,
but enough to amount to a viral and very expensive problem. Federal
law enforcement agencies have seen check fraud go from the
individual acting alone to gangs acting in concert, stealing
millions.
[0006] Besides all the fraud possibilities, paper checks are costly
for everyone--financial institutions, retailers and ultimately
consumers. As the use of paper checks continues to grow at 2-3%
annually the problem will not go away, it will only increase. We
need a solution encompassing all contact points in the processing
of a paper check, a debit card, and a paper debit check, a complete
and connective solution that does not just transfer the
responsibility of check fraud, but stops the fraud.
[0007] Many techniques have been developed to inhibit check fraud,
such as Positive Pay, different forms of electronic check
verification and electronic check presentment with and without
Automated Clearing House (ACH), but none eliminate fraud from the
use of paper checks. All of these electronic methods have taken a
positive step in the handling of paper checks. Each has made the
process more efficient and less costly by not having to handle
paper checks. One area where they all fall short is in the
elimination of check fraud. Check electronification places the
burden of check fraud on the other parties in the process. This may
be good for an individual in the process, but not everyone. If a
worthless check is processed or an account is closed pre-maturely,
someone in the process is responsible.
[0008] Positive Pay is a technique where each corporate customer
sends an electronic list of their outstanding checks to their
financial institution. The corporate customer's financial
institution then uses an Issue File to validate each check as it
clears the financial institution. The Issue File includes
parameters associated with the outstanding checks of each corporate
customer, such as check amounts, account numbers, routing numbers,
check dates, signatures, etc. If a check does not validate
correctly--the financial institution requests proper authorization
from the corporation on how to handle the check. There are two main
problems that exist here: (1) Positive Pay only works with the
financial institutions corporate customers. No other entity in the
process has knowledge of the Positive Pay matching capabilities.
Under this scenario the person presenting the worthless check will
receive the money and the merchant or his financial institution is
left trying to recover the loss. (2) There are no standards for
Positive Pay. Each financial institution implements its own
Positive Pay rules and file formats. In essence, each financial
institution is creating an island for itself and its corporate
customers.
[0009] Check electronification means a number of different things,
from verifying the check writers' history against a database to
transmitting the account and transaction information electronically
to a clearinghouse for settlement. The transmission can be as
simple as the magnetic ink character recognition (MICR) line of the
check to a full image of the check.
[0010] Check electronification processes try to verify that funds
will be available when the check clears the bank account. The
problem is that there is no check electronification process where
the whole check processing system has knowledge of the other
financial institutions' position. Prior to clearing the check the
account could be closed, or funds withdrawn making the check have
non-sufficient funds (NSF). The paper check is eliminated in the
process, which will save financial institution time and money,
however check fraud continues. The verification database is only as
good as the information available. A warranty system is sometimes
put in place to guarantee the merchant receives his money, but
again someone in the check process will be responsible for the
worthless check. The cost of check fraud continues to be passed
along the clearing chain, ultimately to the consumer.
[0011] Therefore, a need exists for a Universal Positive Pay
Database (UPPD) method, system, and/or computer useable medium that
can be universally applied in order to result in a more secure
authorization system. The related art is represented by the
following references of interest.
[0012] U.S. Pat. No. 4,109,238 issued Aug. 22, 1978 to Robert V.
Creekmore, outlines the use of a check verification system for
providing customer operated verification of checks at point of sale
locations. The system enables a customer to verify several possible
kinds of checking functions, including verification of payroll or
government checks as well as certain types of personal checks for
cash. The system utilizes a number of local point of use terminals
which are operated by the customer and which communicate with a
remotely located transaction processor, including a positive file
of customers who are entitled to verify checks. The Creekmore
patent does not suggest a UPPD method, system, and/or computer
useable medium according to the claimed invention.
[0013] U.S. Pat. No. 5,237,620, issued Aug. 17, 1993 to David W.
Deaton et al., describes a check reader and method for reading a
check MICR code having a plurality of fields including a checking
account number. A reader head detects a MICR code on a check and
generates electrical signals representative of the MICR code.
Circuitry omits portions of the MICR code except a predetermined
portion thereof, such that the predetermined portion of the MICR
code can be detected regardless of its location within the MICR
code fields. The Deaton et al. patent does not suggest a UPPD
method, system, and/or computer useable medium according to the
claimed invention.
[0014] U.S. Pat. No. 5,586,222, issued Dec. 17, 1996 to Wei Zhang
et al., describes a process for associating and storing an input
pattern or two-dimensional pattern with use of associative matrices
having the same size as that of an input pattern without converting
it into a one-dimensional pattern, wherein the associative matrices
are generated from the input pattern so as to maximize the Hamming
distance between state invariants which correspond to each
different storage pattern, and thereby a power of categorization
that corresponds to each storage pattern can be enhanced, thus
increasing the storage capability and robustness. The Zhang et al.
patent does not suggest a UPPD method, system, and/or computer
useable medium according to the claimed invention.
[0015] U.S. Pat. No. 5,677,955 issued Oct. 14, 1997 to John Doggett
et al. outlines the use of an electronic instrument created in a
computer-based method for effecting a transfer of funds from an
account of a payer in a funds-holding institution to a payee. The
electronic instrument includes an electronic signature of the
payer, digital representations of payment instructions, the
identity of the payer, the identity of the payee and the identity
of the funds-holding institution. A digital representation of a
verifiable certificate by the institution of the authenticity of
the instrument of the instrument is appended to the instrument.
[0016] The Doggett et al. method and apparatus are associated
essentially with a bank specific Positive Pay system, as opposed to
the Universal Positive Pay Database system according to the claimed
invention, wherein all parties are able to verify check register
information of a customer, e.g., a payer, at every point along the
path of a check clearing process, e.g., at the point of sale, at
the payee's bank, at a Federal Reserve Clearing Division or a
clearing house, and at the payer's bank. Bank specific Positive Pay
systems restrict access by a customer to check register information
for the customer. The Doggett et al. patent does not suggest a UPPD
method, system, and/or computer useable medium according to the
claimed invention.
[0017] U.S. Pat. No. 5,801,366 issued Sep. 1, 1998 to Wade L. Funk
et al., outlines the use of an automated check processing system
which includes an input device receiving checking account
information and a check amount of a check provided for payment in a
transaction. A transaction database coupled to the input device
then electronically receives and stores the checking account
information and check amount, which are then downloaded to a power
encoder. The power encoder receives checking account information
and check amounts for transactions occurring over a predetermined
transaction period and then matches the checks with the electronic
checking account information and check amounts.
[0018] The Funk et al. system is similar to the system described by
Doggett et al., in that Funk et al. describes a bank specific
Positive Pay system, as opposed to a Universal Positive Pay
Database system according to the claimed invention, wherein all
parties are able to verify check register information of a customer
at every point along the path of a check clearing process. The Funk
et al. patent does not suggest a UPPD method, system, and/or
computer useable medium according to the claimed invention.
[0019] U.S. Pat. No. 6,036,344 issued Mar. 14, 2000 to David M.
Goldenberg outlines the use of an apparatus and method for
countering fraudulent check cashing schemes that includes a central
processing center that is connected to a plurality of banks through
secure communication channels. Each check drawn against the banks
has information stored therein, with that information corresponding
to a plurality of digits and characters for the central processing
center. When a check is presented at a bank, the information on the
check is sent through one of the secure communication channels to
the central processing system, which determines whether or not the
account has sufficient funds to allow the check to be drawn against
the account. The Goldenberg patent does not suggest a UPPD method,
system, and/or computer useable medium according to the claimed
invention.
[0020] U.S. Pat. No. 6,213,391 B1, issued Apr. 10, 2001 to William
H. Lewis, describes a system for identifying an individual by
either generating an identification profile based on a distinctive
biometric characteristic possessed by that person (e.g. voice
analysis, finger print, facial scan, DeoxyriboNucleic Acid (DNA),
etc.), or by verifying some digital "signature" representation
assigned to that person. The biometric information or digital
signature may then be used in a variety of functions to enhance
both the security and convenience of conducting electronic
transactions. The system may provide an algorithm for creating a
personal identification number (PIN) for use as a preliminary or
secondary identification steps, and/or an algorithm for generating
unique tone codes for use in personal identification via telephone
or modem. Further, security of online transactions may be greatly
improved by placing access key information in a medium outside the
computer host or client. The system further provides a device that
facilitates a user's ability to change codes or methods of
generating codes instantly, without having to contact their bank,
credit card company, etc. The Lewis patent does not suggest a UPPD
method, system, and/or computer useable medium according to the
claimed invention.
[0021] World Intellectual Property Organization (WIPO) Patent
Application Publication No. WO 97/055383, published Feb. 13, 1997,
describes a method for checking and processing bank checks, wherein
a secret code is computed, in the form of a CMC7 code thereof, and
from an account number read off a check submitted for payment, by a
dedicated chip in a check processing device held by a payee, then
compared with a secret code input into the device by the check
issuer to determine whether he or she is the rightful account
holder. The WIPO '267 application does not suggest a UPPD method,
system, and/or computer useable medium according to the claimed
invention.
[0022] WIPO Patent Application Publication No. WO 97/36267,
published Oct. 2, 1997, outlines the use of an automated positive
check authorization system that includes an input device for
receiving a check amount and checking account information
pre-printed on a check drawing on a checking account presented in a
transaction at the time of check presentment. The checking account
information and check amount are electronically transmitted to a
check verifier, which receives the check amount and checking
account information from the input device and searches a checking
account database for a current balance in the checking account. The
WIPO '267 application does not suggest a UPPD method, system,
and/or computer useable medium according to the claimed
invention.
[0023] THE STATE OF UTAH UNIFORM ACCOUNTING MANUAL, revised on Apr.
1, 1997, describes how unclaimed tangible or "custodial property"
is to be handled in Utah. THE STATE OF UTAH UNIFORM ACCOUNTING
MANUAL does not suggest a UPPD method, system, and/or computer
useable medium according to the claimed invention.
[0024] U.S. Public Law 108-100, 117 STAT. 1177, entitled the "Check
21 Act" (CHECK 21) was signed into law in the U.S. on Oct. 28,
2003, becomes effective on Oct. 28, 2004 (see U.S. Public Law
108-100, 117 STAT. 1177), and is incorporated herein by reference.
CHECK 21 fosters innovation in the payments system and enhances its
efficiency by reducing some of the legal impediments to check
truncation. The law facilitates check truncation by a negotiable
instrument called a "substitute check", which permits banks to
truncate original checks, to process check information
electronically, and to deliver substitute checks to banks that want
to continue receiving paper checks. A "substitute check" is the
legal equivalent of the original check and includes all the
information contained on the original check. The CHECK 21 law does
not require banks to accept checks in electronic form nor does it
require banks to use the new authority granted by the act to create
substitute checks. The CHECK 21 law does not suggest a UPPD method,
system, and/or computer useable medium according to the claimed
invention.
[0025] None of the above inventions and patents, taken either
singly or in combination, is seen to describe the instant invention
as claimed.
SUMMARY OF THE INVENTION
[0026] The present invention is a Universal Positive Pay Database
(UPPD) method, system, and/or computer useable medium to reduce
financial transaction fraud. A UPPD database is configured to store
thereon transaction records associated with financial transactions
associated with customers of the UPPD database. Each transaction
record is configured to include parameters associated with a
particular financial transaction. A particular financial
transaction is initiated between a payer and a payee by providing
parameters associated with the particular financial transaction to
the UPPD database.
[0027] An Issue File is also provided to the UPPD database. The
Issue File includes parameters associated with the particular
financial transaction, and the particular financial transaction is
associated with a drawee bank. A correspondence determination is
made between the parameters associated with the particular
financial transaction from the Issue File and the parameters
associated with the particular financial transaction provided to
the UPPD database to initiate the particular financial transaction
at every point along a financial transaction clearing process. The
customer, payer, payee, payee bank, drawee bank, and banking
institutions intermediate the payee bank and the drawee bank are
able to access the correspondence determination at every point
along a financial transaction clearing process.
[0028] Accordingly, it is a principal aspect of the invention to
provide a UPPD method, system, and/or computer useable medium that
reduces financial transaction fraud and maintains financial
transaction payment control.
[0029] It is another aspect of the invention to provide a UPPD
method, system, and/or computer useable medium that can
interchangeably be used by customers, financial institutions,
commercial retail entities, the Federal Reserve, check verification
services, insurance companies, pharmaceutical companies, and other
entities.
[0030] It is a further aspect of the invention to provide a UPPD
method, system, and/or computer useable medium that also provides a
positive or negative financial transaction history rating on a
customer.
[0031] Still another aspect of the invention to provide a UPPD
method, system, and/or computer useable medium configured to
receive input data from a wide variety of technology.
[0032] Yet another aspect of the invention provide a UPPD method,
system, and/or computer useable medium to perform a point of sale,
point of presentment, and point of encashment financial transaction
authorization.
[0033] It is another aspect of the invention to provide a UPPD
method, system, and/or computer useable medium configured for uuse
with any transaction instrument.
[0034] It is a further aspect of the invention to provide a UPPD
method, system, and/or computer useable medium configured for a
paper check conversion to an electronic check or an electronic
check conversion to a paper check on an MICR laser printer
utilizing the associated transaction record for the UPPD
system.
[0035] Still another aspect of the invention to provide a UPPD
method, system, and/or computer useable medium configured for use
with security detectable inks, tamper-proof foils and threads, as
well as holograms applied to a financial instrument to provide
additional security against fraud.
[0036] Yet another aspect of the invention to provide a UPPD
method, system, and/or computer useable medium configured for use
with cell wallets, palm wallets, e-wallets, cam wallets, and other
wireless devices.
[0037] It is a further aspect of the invention to provide a UPPD
method, system, and/or computer useable medium configured for use
with plastic card financial instruments such as credit cards, debit
cards, stored value cards, payroll cards, cash cards, smartcards,
etc.
[0038] It is another aspect of the invention to provide a UPPD
method, system, and/or computer useable medium to provide a,
service for bill presentment, bill payment, accounts payable, and
payroll.
[0039] Still another aspect of the invention to provide a UPPD
method, system, and/or computer useable medium configured to
utilize a transaction instrument with a micro computer chip
embedded within the surface of the transaction instrument, to
contain digitized signatures, security, and Global Positioning
System (GPS) data and transaction record(s).
[0040] Yet another aspect of the invention to provide a UPPD
method, system, and/or computer useable medium to reduce the amount
of paper and plastic involved when conducting banking
transactions.
[0041] It is a further aspect of the invention to provide a UPPD
method, system, and/or computer useable medium to implement a
positive match of data exchange for insurance policies, medical
information, and pharmaceutical information.
[0042] It is another aspect of the invention to provide UPPD
method, system, and/or computer useable medium configured to enable
a financial institution merchant and all parties to debit stall or
stall debit on any and all debit card and check debit financial
transactions.
[0043] It is an aspect of the invention to provide improved
elements and arrangements thereof in a UPPD method, system, and/or
computer useable medium for the purposes described which is
inexpensive, dependable and fully effective in accomplishing its
intended purposes.
[0044] These and other aspects of the present invention will become
readily apparent upon further review of the following specification
and drawings.
BRIEF DESCRIPTION OF THE DRAWINGS
[0045] FIG. 1 a network diagram example of a UPPD system according
to the present invention.
[0046] FIG. 2 is network diagram example of a UPPD system with
outside financial services provided according to the present
invention.
[0047] FIG. 3 is a network diagram example of a UPPD system with
check verification provided according to the present invention.
[0048] FIG. 4 is a network diagram example of a UPPD system with
check verification and outside financial services provided
according to the present invention.
[0049] FIGS. 5A and 5B are a flow diagram of a UPPD method for
checking accounts according to the present invention.
[0050] FIG. 6 is a flow diagram illustrating bank specific Positive
Pay according to the prior art.
[0051] FIG. 7 is a flow diagram showing no connectivity with bank
specific Positive Pay according to the prior art.
[0052] FIG. 8 is a diagram according to the prior art showing why
check fraud works today.
[0053] FIG. 9 is a flow diagram indicating how a UPPD system
processes a bad check according to the present invention.
[0054] FIG. 10 is a diagram indicating how stalled debt or debit
stall is used by a UPPD according to the present invention.
[0055] FIG. 11 is a diagram indicating how Safety Check Deposit
software is used by a UPPD system according to the present
invention.
[0056] FIG. 12 is a diagram indicating how TrackBack software is
used by a UPPD system according to the present invention.
[0057] FIG. 13 is a diagram indicating how a credit history
compilation is used by a UPPD system.
[0058] FIG. 14 is an overview of a diagram showing different
communications methods used by a UPPD system according to the 5
present invention.
[0059] FIGS. 15A and 15B are flow charts of bank specific Positive
Pay processes that can be used with UPPD processes according to the
present invention.
[0060] FIGS. 15C, 15D, 15E, 15F, 15G, 15H, 15I, 15J, and 15K, are
flow charts of UPPD processes according to the present
invention.
[0061] FIG. 16 is a functional diagram of a UPPD system according
to the present invention.
[0062] FIG. 17 is a functional diagram of a UPPD system according
to the present invention.
[0063] FIG. 18 is a functional diagram of a UPPD system according
to the present invention.
[0064] FIG. 18 is a functional diagram of a UPPD system according
to the present invention.
[0065] FIG. 19 is a functional diagram of a UPPD process according
to the present invention.
[0066] FIG. 20 is a functional diagram of a UPPD process according
to the present invention.
[0067] FIGS. 21A and 21B are flow charts of UPPD processes
according to the present invention.
[0068] FIGS. 22A, 22B, 22C, and 22D are flow charts of UPPD
processes according to the present invention.
[0069] FIGS. 23A, 23B, 23C, 23D, and 23E are flow charts of UPPD
processes according to the present invention.
[0070] FIGS. 24A, 24B, 24C, 24D, 24E, and 24F are functional
diagrams of UPPD processes according to the present invention.
[0071] FIG. 25 is a functional diagram of a UPPD process according
to the present invention.
[0072] FIGS. 26A, 26B, 26C, 26D, and 26E are functional diagrams of
UPPD processes according to the present invention.
[0073] FIG. 27 is a functional diagram of a UPPD system according
to the present invention.
[0074] FIGS. 28A and 28B are functional diagrams of UPPD processes
according to the present invention.
[0075] FIG. 29 is a functional diagram of a point of sale
transaction utilizing a UPPD system according to the present
invention.
[0076] FIG. 30 is a functional diagram of a UPPD system according
to the present invention.
[0077] FIG. 31 is a functional diagram of a UPPD system according
to the present invention.
[0078] FIGS. 32A, 32B, 32C, 32D, 32E, and 32F, are functional
diagrams of a UPPD processes according to the present
invention.
[0079] FIG. 33 is a functional diagram of the use of a PIN with a
UPPD system according to the present invention.
[0080] FIGS. 34A and 34B are functional diagrams of UPPD processes
according to the present invention.
[0081] FIGS. 35A and 35B are diagrams of security measure for use
with a UPPD system according to the present invention.
[0082] FIG. 36 is a functional diagram of biometric security
measures for use with a UPPD system according to the present
invention.
[0083] FIG. 37 is a functional diagram of a UPPD system according
to the present invention.
[0084] Similar reference characters denote corresponding features
consistently throughout the attached drawings.
DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS
[0085] This present invention is a UPPD method, system, and/or
computer useable medium. The invention disclosed herein is, of
course, susceptible of embodiment in many different forms. Shown in
the drawings and described herein below in detail are preferred
embodiments of the invention. It is to be understood, however, that
the present disclosure is an exemplification of the principles of
the invention and does not limit the invention to the illustrated
embodiments.
[0086] Referring to the drawings, a UPPD system 10 for maintaining
financial transaction control and preventing financial transaction
fraud with connectivity between users is shown in FIG. 1. The UPPD
system 10 includes a UPPD database 20 and provides match,
authentication, authorization, settlement, and clearing processes
for financial transactions initiated by customers of the UPPD
database 20. UPPD customers, as used herein, are individuals,
companies, businesses, organizations, government agencies, etc.,
who have access to the UPPD database 20.
[0087] The UPPD system 10 provides connectivity of information
communication and verification by matching an issued item and/or
files to parameters associated with a particular financial
transaction, as presented at point of presentment (POP), point of
encashment (POE), point of sale (POS), etc, the ability to
ascertain whether a financial transaction is authentic, or whether
it appears to be authentic. Any indication that a financial
transaction has been altered, account closed, or insufficient funds
exist, the financial transaction can be blocked immediately or a
debit stalled preventing banks, banks customers, merchants, etc.,
from being held liable for worthless transaction instruments (e.g.,
checks, debit check(s), debit card transaction(s), debit/credit
ticket(s)/slip(s), sales ticket(s)/ receipt(s), etc.).
[0088] The UPPD system 10 is configured to enable multiple banks,
consumers, and merchants a truly universal protection and security
system. The UPPD system 10 provides the most cost effective way to
virtually eliminate fraud, provide unprecedented security, and
drastically reduce the cost of clearing financial transactions
including paper and electronic official items, e.g., checks, debit
cards, debit checks, money orders, gift certificates, cards and
other official documents. The UPPD system 10 provides connectivity
from banks to banks and merchants to banks instantly. The UPPD
system 10 provides a source for connectivity, centralized and/or
personalized data retrieval, match authentication, confirmation of
sufficient funds, protection from identity theft, and other
applications.
[0089] While the UPPD database 20 is illustrated as a single
database, the UPPD database 20 may be configured as a plurality of
separate or disparate databases interconnected through a network
system via any number of switches, such as a local area network
(LAN), a wide area network (WAN), an intranet, an extranet, the
Internet, etc.
[0090] The UPPD system 10 includes a computer useable medium and a
computer device with a processor. As used herein, a "computer
useable medium" includes a non-volatile medium (e.g., a magnetic
medium, hard disk, a solid state disk, optical storage, Flash
memory, electrically eraseable programmable read only memory
(EEPROM), parameter random access memory (PRAM), etc.), a volatile
medium (e.g., dynamic RAM (DRAM), Direct Rambus.RTM. DRAM (DRDRAM),
double-data rate DRAM (DDR DRAM), double-data rate synchronous DRAM
(DDR SDRAM), enhanced DRAM (EDRAM), enhanced synchronous DRAM
(ESDRAM), extended data out (EDO) DRAM, burst EDO (BEDO) DRAM, fast
page mode DRAM (FPM DRAM), Rambus DRAM (RDRAM), SyncLink.RTM. DRAM
(SLDRAM), synchronous RAM (SRAM), synchronous DRAM (SDRAM),
synchronous graphic RAM (SGRAM), video RAM (VRAM), window RAM
(WRAM), etc.), or an installation medium (e.g., a CD-ROM, a floppy
disk, a removable disk, etc.), on which computer programs are
stored for loading into the computer device.
[0091] The computer device may be any type of computer device with
a processor, such as a desktop computer, a laptop computer, a
palmtop computer, a network computer, a personal digital assistant
(PDA), an embedded device, a smart phone, or any other suitable
computer device. For example, the UPPD system 10 may include one or
more server computers with a processor, an area of main memory for
executing program code under the direction of the processor, a
storage device for storing data and program code and a bus
connecting the processor, area of main memory and the storage
device. The UPPD database 20 may be stored on the storage device,
as well as a data communications device, such as a modem, connected
to the bus for wirelessly and/or non-wirelessly connecting the
computer to a local area network (LAN), a wide area network (WAN),
an intranet, an extranet, the Internet, etc. UPPD software is
stored in the computer useable medium and executes under the
direction of the processor.
[0092] The UPPD software causes the processor to provide and
configure the UPPD database 20 to store thereon transaction records
associated with financial transactions corresponding to customers
of the UPPD database 20. Each transaction record is configured to
include alphanumeric data pertaining to parameters associated with
a particular financial transaction. Such parameters for one
financial transaction include alphanumeric data grouped into fields
associated with items that may include a payer name, a payee name,
payer and/or payee personal specifics, a transaction instrument, an
account number, a PIN, a digital signature, etc. Biometric
information may also be provided as parameters, such as DNA, facial
structure, iris, retina, finger print, voice, signature, etc. For
example, parameters associated with a paper/electronic check may
include a check number, an issue date, a payee, a routing number,
an account number, etc.
[0093] A transaction instrument may be configured to operate with
the UPPD system 10. A "transaction instrument", as used herein,
means a paper and/or electronic check (paper/electronic check), an
image of a paper/electronic check, a debit card, a debit check, a
an intranet, an extranet, the Internet, etc. UPPD software is
stored in the computer useable medium and executes under the
direction of the processor.
[0094] The UPPD software causes the processor to provide and
configure the UPPD database 20 to store thereon transaction records
associated with financial transactions initiated by customers of
the UPPD database 20. Each transaction record is configured to
include alphanumeric data pertaining to parameters associated with
a particular financial transaction. Such parameters for one
financial transaction include alphanumeric data grouped into fields
associated with items that may include a payer name, a payee name,
payer and/or payee personal specifics, a transaction instrument, an
account number, a PIN, a digital signature, etc. Biometric
information may also be provided as parameters, such as DNA, facial
structure, iris, retina, finger print, voice, signature, etc. For
example, parameters associated with a paper/electronic check may
include a check number, an issue date, a payee, a routing number,
an account number, etc.
[0095] A transaction instrument may be configured to operate with
the UPPD system 10. A "transaction instrument", as used herein,
means a paper and/or electronic check (paper/electronic check), an
image of a paper/electronic check, a debit card, a debit check, a
smartcard, a credit card, a point of sale (POS) terminal, a point
of escheat (POE) terminal, a point of presentment (POP) terminal, a
bank point of data (POD) terminal, an automated teller machine
(ATM), a personal digital assistant (PDA), a telephone, a cellular
telephone, a cordless telephone, a pager, a watch, a television, a
radio, a compact disc (CD) player, a tape player, a copier, a
facsimile machine, or any other electronic device.
[0096] Account number parameters for transaction records of
financial transactions for the UPPD system 10 may be associated
with a checking account number, a savings account number, a credit
card account number, a money market account number, a liability
account number, a bills/payable account number, an asset account
number, an invoice/receivables account number, a cash account
number, an insurance policy account number, an account number for a
will, an account number for a trust, or a number for any other
financial account.
[0097] The UPPD system 10 is configured to operably utilize an
Issue File substantially the same as Positive Pay files used with
bank-specific Positive Pay services previously described, may have
limited connectivity and/or may be universally available through
connectivity via the UPPD system 10 between any party(s), such as
bank(s), institution(s), company(s), third party(s), vendor(s),
merchant(s), consumer(s), etc. An Issue File, as used herein, is
configured for use with the UPPD system 10 and includes one or more
transaction records associated with certain financial transactions,
where the financial transactions are associated with a drawee bank.
The transaction record(s) in an Issue File each include
alphanumeric data pertaining to parameters associated with a
certain financial transaction. The Issue File is established at the
time the particular financial transaction is initiated between a
payer and a payee by a customer of the UPPD database 20 by
providing parameters associated with the particular financial
transaction to the UPPD database 20.
[0098] For a particular financial transaction, a comparison or
correspondence determination is made between the parameters
associated with the particular financial transaction from the Issue
File and the parameters associated with the particular financial
transaction provided to the UPPD database 20 when the particular
financial transaction was initiated. Such a correspondence
determination is made at periodic intervals (e.g., fractions of a
second), and at every point along the financial transaction
clearing process. The correspondence determination is also
available to the customer, payer, payee, payee bank, drawee bank,
and banking institutions intermediate the payee bank and the drawee
bank at any time, e.g., throughout the financial transaction
clearing process.
[0099] The customer, payer, payee, payee bank, drawee bank, and
banking institutions intermediate the payee bank and the drawee
bank can then determine whether the correspondence determination
between the financial parameters from the Issue File and the
financial transaction parameters provided to the UPPD database 20
when the particular financial transaction was initiated does not
match and/or does not coincide below a minimum threshold, thereby
enhancing security by facilitating an accurate determination as to
whether the tampering or altering has occurred to the transaction
record at every point along the financial transaction clearing
process.
[0100] The UPPD software may also search and capture transaction
records for compliance with escheat laws, automatically poll
transaction records, transmit a partial or full reconciliation of
the transaction records, locate lost, stolen, misplaced items, and
items not presented and that remain outstanding, and archive and
store transaction records, matching data, verification data, and
authentication data for a predetermined period of time.
[0101] Currently a payments system, defined as the combined
transaction-based processes, procedures, rules, and regulations
employed by the financial institutions and, in the United States,
the Federal Reserve System, is employed for the express purpose of
moving funds among financial institutions and individuals in
support of commerce. An electronification payments system
environment has been evolving over time and has been influenced by
a need to reduce current item processing costs, reduction in the
cost of float by increasing the speed of the payments system
process, the growth of point-purchase conversion volumes, the
emergence of new technologies, particularly the use on the
Internet, customer acceptance of multiple delivery channels,
maturation of image technology as a viable processing platform,
concerns about cybersecurity, and, in the United States, the Check
Truncation Act (CTA).
[0102] As used herein, the `electronification` of checks refers to
the process of converting paper checks into some form of an
electronic financial transaction, such as an image-based
transaction or image exchange, Automated Clearing House (ACH) debit
or electronic check presentation (ECH) debit. An `electronic check`
refers to one of several types of electronic financial transactions
including an ACH-based electronic check, an electronic network
electronic check, and Internet or telephone initiated payments. The
ACH-based electronic check begins as a paper check and is converted
into, or truncated to, an ACH debit entry. The paper check is not
processed. An Internet or telephone initiated payment is a
financial transaction initiated over the Internet or by telephone,
with the debit carried out electronically, usually by an ACH debit.
Some users categorize payments initiated via the Internet or
telephone, but that are effected by paper drafts, as electronic
checks, even though the debit is paper-based. Electronic check may
also refer to any attempt to initiate payment through a personal
computer, computer system, or the Internet.
[0103] In the United States, the CTA facilitates check truncation
by eliminating some of the legal impediments to the use of
electronics in check processing, in order to allow all financial
institutions to participate in an environment in which the
truncation of checks can occur at any point in the payment process.
In addition, the CTA seeks to ensure that financial institutions
which have not, or may not, invest in imaging do not have to make a
large financial investment to develop the system infrastructure
needed to support check truncation.
[0104] Check imaging is a process whereby check images are captured
via image camera and stored in a digitized format. This process may
be accomplished on medium to high speed processing equipment, such
as equipment manufactured by IBM, NCR, Unisys, Banc Tec, etc., is
normally done in financial institution back offices for the
capture, sorting, and distribution of checks and other MICR encded
documents. The benefits of imaging over microfilm are quality,
transportability, availability, and timeliness. The capturing
financial institution can keep an archival copy of every document
processed. A copy of a customer's check can be included in the
statement mailing. Checks drawn on other financial institutions can
be exchanged with those financial institutions in lieu of physical
documents. Check imaging reduces the risk inherent in the payments
system by considerably reducing the time during which checks are
presented and paid.
[0105] An ACH debit entry, electronic funds transfer (EFT), and/or
other money transfer processes initiated by an originator, such as
a merchant, is known as a point of presentment (POP) financial
transaction. A POP financial transaction is initiated as a single
entry authorization, and uses a check as a source document. The
MICR line information is captured and provided by the originating
merchant to the paying bank at the POP to effect a transfer of
funds from a consumer account of the paying bank. This type of
financial transaction may only be used for non-recurring, in person
(i.e., at the POP) entries for which there are no standing
authorizations with the originating merchant for the origination of
the ACH entries to the consumer's account.
[0106] A POP conversion is a process in which checks are converted
into electronic debits and processed using the ACH network. POP
conversion may be effected when the merchant keeps the original
check or when the consumer receives the check after the conversion
process. When the consumer receives the check after the conversion
process, the consumer submits an original check and signs an
authorization document, a copy of which is returned to him/her when
the financial transaction is completed. The merchant scans the
written check through a special reader that captures the account,
check, and routing number, as well as the purchase amount.
[0107] The check data are then sent to an agent for authorization
of the amount. Once authorized, the amount is converted to an
electronic financial transaction and sent through the ACH network
for payment. The consumer signs the separate authorization document
and receives the original check back, which has been stamped "void"
by the merchant. With this type of financial transaction, the
paying bank does not have the opportunity to review the check and
authenticate the customer through signature verification.
[0108] Returning the paper check to the consumer after the ACH
financial transaction is generated minimizes the risk that a
perpetrator will redirect the funds to an account other than the
retailer's. Process controls manage the debit and credit flow from
origination to conclusion. The credits to the merchant's account
must match the debits that are originated. This proof mechanism
protects both the merchant and consumer from dishonest employees,
interlopers between the sending and receiving of the transactions,
and deceitful individuals who try to alter the financial
transaction amount.
[0109] With telephone financial transactions, the originating
merchant or service provider can initiate a single entry ACH debit
pursuant to an oral authorization obtained over the telephone to
transfer funds from a consumer account. This type of entry may only
be used as a single entry, for which there is not standing
authorization for the origination of the ACH entries to the
consumer's account. A telephone entry may only be used when there
is an existing relationship between the originating merchant or
service provider and consumer or, when there is not an existing
relationship between the originating merchant or service provider
and the receiver, when the consumer initiates the telephone
call.
[0110] An originating merchant or service provider may initiate an
ACH debit entry pursuant to an authorization obtained from the
paying bank, via the Internet, to transfer funds from a consumer
account at the paying bank.
[0111] Positive Pay services have been available from individual
banks in recent years. It is a service that a bank sells for a fee
to its account holders whereby only checks that are pre-approved
are accepted at the bank. The check generating customer generally
uploads a file of transaction records associated with financial
transactions daily to the bank of all checks written that day. When
checks drawn on the customers' accounts are presented to the bank,
their database is queried. If the transaction record for a check
has been tampered with or if transaction record includes an
unauthorized check number, the transaction record will be
rejected.
[0112] Positive Pay services are recognized as an effective service
to fight against check fraud. Rejected checks cause considerable
effort to be expended throughout the highly regulated banking
system. A typical check passes from point of sale to depositing
bank to the Federal Reserve or clearing bank and back to the
account holder's bank and account. At each step, the check is read,
sorted and recorded, forming a trail that can be easily traced.
[0113] The existing Positive Pay services are bank specific. In
other words, only a bank's own account holders can utilize it and
take advantage of it. The UPPD system 10 can be used by both
account holder members and non-members. The UPPD system 10 may be
accessed by customers, payers, payees, payee banks, drawee banks,
and banking institutions intermediate the payee banks and the
drawee banks for issuing and tracking transaction records
associated with financial transactions at every point along the
financial transaction clearing process (e.g. the POP, POS, POE,
bank POD, the truncation bank, etc.).
[0114] The UPPD system 10 allows all banks to participate in a
process that can catch fraudulent transaction records associated
with a financial transaction earlier in the financial transaction
redemption cycle. For example, for paper/electronic checks, at each
step in the check clearing process, the UPPD database 20 of the
UPPD system 10 can be queried to determine if the owner of the
account has indeed authorized the instrument for the amount written
and signature on the financial instrument. A few banks have already
developed their own internal Positive Pay software, however, this
software is only bank specific.
[0115] The Check 21 Act (CHECK 21) was signed into law in the
United States on Oct. 28, 2003, and becomes effective on Oct. 28,
2004 (see U.S. Public Law 108-100 117 STAT. 1177). CHECK 21 fosters
innovation in the payments system and enhances its efficiency by
reducing some of the legal impediments to check truncation. The law
facilitates check truncation by a negotiable instrument called a
"substitute check", which permits banks to truncate original
checks, to process check information electronically, and to deliver
substitute checks to banks that want to continue receiving paper
checks. A "substitute check" is the legal equivalent of the
original check and includes all the information contained on the
original check. The law does not require banks to accept checks in
electronic form nor does it require banks to use the new authority
granted by the act to create substitute checks.
[0116] As used herein, the definitions for the following terms
apply. The term "bank" means any person, company, and/or business
that is engaged in the business of banking and includes (a) any
depository institution as defined in section 19(b)(1)(A) of the
U.S. Federal Reserve Act, (b) any Federal reserve bank, (c) any
U.S. Federal home loan bank, or (d) to the extent it acts as a
payer (i) the Treasury of the U.S., (ii) the U.S. Postal Service,
(iii), a State government, or (iv) a unit of general local
government as defined in section 602(24) of the Expedited Funds
Availability Act.
[0117] The terms "magnetic ink character recognition line" and
"MICR line" means the numbers, which may include the bank routing
number, account number, check number, check amount, and other
information, that are printed near the bottom of a check in
magnetic ink in accordance with generally applicable industry
standards.
[0118] The term "substitute check" means a paper reproduction of
the original check that (a) contains an image of the front and back
of the original check, (b) bears a MICR line containing all the
information appearing on the MICR line of the original check,
except as provided under generally applicable industry standards
for substitute checks to facilitate the processing of substitute
checks, (c) conforms, in paper stock, dimension, and otherwise,
with generally applicable industry standards for substitute checks,
and (d) is suitable for automated processing in the same manner as
the original check.
[0119] The term "truncate" means to remove an original paper check
from the check collection or return process and send to a
recipient, in lieu of such original paper check, a substitute check
or, by agreement, information relating to the original check
(including data taken from the MICR line of the original check or
an electronic image of the original check), whether with or without
subsequent delivery of the original paper check.
[0120] The UPPD system 10 is configured to be compatible and/or
fully operational with CHECK 21 and can utilize transaction records
including a check number, a check amount, an account number, a
routing number, a check date, signatures, digitized signatures and
matrixes and a check payee. The identity of the drawee-payer bank
may be derived from the routing number. The transaction records are
not limited to written check information and can include other
financial instruments such as electronic checks, cash cards, credit
cards, traveler's checks, money orders, gift certificates and
cashier 's checks. Although the customer (depositor) 30 may
primarily use the UPPD system 10 for written checks, because of the
similarity of financial records between these transaction
instruments, the UPPD system 10 can easily accommodate the
transaction records for other transaction instruments as well.
[0121] For a customer 30, the UPPD system 10 has the flexibility to
utilize several means for inputting current transaction record
parameters. These include computerized devices such as personal
computers, portable laptops and palmtops, as well as mainframe
computers and servers, all of which can be tied into the Internet
and land based data bank.
[0122] The customer 30 can simply log onto the uniform resource
locator of a Web site of the UPPD database 20 and can then fill out
a customized Web form to upload current transaction record
parameters to the Web site by hypertext transfer protocol (HTTP) or
by e-mail. These types of forms are well-known to those schooled in
the related art, as is the use of the Internet protocols to
transmit forms information on the Internet.
[0123] Alternatively, the customer 30 can initially set up an
account number and enter an activation code or a preset encrypted
code so that transaction record parameters can be transmitted to
the UPPD database 20 and Web site by keying in the information by
touchtone telephone, so that conventional decoder machines link the
information to the UPPD database 20. A wireless telephony device
can be used in the same manner, with either audible or subaudible
tones corresponding to the keys pressed being modulated onto the
radio frequency carrier, and then being demodulated on reception
and linked to the UPPD database 20. Another alternative uses voice
recognition software to encode information received by telephone to
enter transaction record parameters to the UPPD database 20. Use of
these telephony devices, voice recognition software, and systems
are well-known to those skilled in the related art and are not a
point of novelty with this invention.
[0124] Additionally, technology such as optical character
recognition devices and magnetic ink character recognition devices
can also be used as a means for inputting current transaction
record parameters from the customer 30. The magnetic ink character
recognition devices and digital readers can also be used by
commercial check generating entities at the point of presentment
and point of encashment to read transaction record parameters off
of a written check, allowing matching, authenticated,
authorization, settlement, and clearing.
[0125] Transaction record parameters may be provided to the UPPD
database 20 wirelessly and/or non-wirelessly. For example, the
transaction record parameters by be transmitted by modem or
wirelessly using direct dial software without going through a
computer network, by facsimile transmission, by mail, etc.
Inputting transaction record parameters in this manner, however,
are typically not as convenient and popular as using the Internet
and existing ACHs 70, EFTs, wires, credit cards, or other financial
communications networks.
[0126] A participating commercial entity, such as a commercial
retail store 50, member bank 60, clearing house 70.and Federal
Reserve 80 may match and compare the information from the check
with the transaction record parameters in the UPPD system 10.
Hence, a collecting bank intermediate the presenting bank and the
payer bank may validate the check by comparing the transaction
record parameters recorded in the UPPD database 20 against the
entries on the check to verify that the check has not been altered
or tampered with. This may be done by logging onto a web site
associated with the UPPD system 10 over the Internet and simply
accessing the desired transaction record in the UPPD database
20.
[0127] If the check has been altered in any way, the participating
commercial entity is immediately notified not to accept the altered
check. Likewise, a customer 30 can instantly check the UPPD system
10 for either a perfect match or a rejection of the check. An ACH
70 or Federal Reserve Clearing Division 80 can also instantly check
the UPPD system 10 or reject an altered check based on the current
transaction record parameters.
[0128] The UPPD software may be configured to perform a partial or
full real-time reconciliation of the transaction records for a
customer 30 on a daily or weekly basis, depending on the needs of
the customer 30. The reconciliation for the customer 30 may be
requested and transferred via the Internet from the UPPD system
10.
[0129] As is shown in FIG. 2, the customer 30 can also upload the
transaction record(s) to be reconciled to the customer's bank 40.
The customer bank 40 then passes the current transaction record(s)
onto the UPPD system 10, where the current transaction record(s)
are reconciled and returned to the customer 30 (via the
Internet).
[0130] A polling option is also available where the customer 30 may
upload their current transaction record(s) directly to their bank
40. The UPPD system 10 may also dial up the bank 40 and poll the
current transaction record(s) for download into the UPPD system 10.
This polling is automatically done with software that is part of
the UPPD system 10. This is a pass through on the part of the
customer bank 40, allowing the customer bank 40 to charge a fee for
this service.
[0131] Similarly, at the end of each day, the UPPD system 10 can
dial up the location of the customer 30 and poll the customer 30
for the current transaction record(s). The polling may occur either
by an automatic dial up from the customer 30 to the UPPD system 10
or by the UPPD system 10 automatically dialing up the customer 30
and downloading the current transaction record(s). Typically, one
type of polling is chosen over another, depending on the preference
of the customer 30. Both types of polling utilize software that is
incorporated into the UPPD system 10 and can simply sweep the
current check register files and download them into the UPPD
database 20.
[0132] The UPPD software may also be configured to search for and
capture escheated transaction record(s). Escheated transaction
record parameters are information on checks that have not been
cashed and are "unclaimed". Configured in this manner, the UPPD
software continuously searches for outstanding escheated
transaction record parameters. The UPPD software can track each
state's individual escheatment laws and apply those laws which
pertain to the customer 30.
[0133] Financial instruments that are never presented for
encashment or never redeemed are required to be reported as
abandoned property in many states. The face value of those
financial instruments must be turned over to the state with a
record of the rightful owner on a periodic basis. The data in the
UPPD system 10 can be used to generate these reports.
[0134] A microcomputer chip can also be embedded within the surface
of a financial instrument, such as a paper check, that could
provide current transaction record parameters, additional security,
digitized information, signatures, PINs, and GPS tracking data.
This provides another fraud deterrent security feature along with
the necessary transaction record information used in the UPPD
system 10. This microcomputer chip, if altered or tampered with,
can immediately indicate that a falsification and/or tampering has
occurred with a transaction instrument.
[0135] Security detectable inks, tamper-proof foils, electron foils
and threads, as well as holograms can also be incorporated into a
financial instrument used in the UPPD system 10 to provide
additional security against fraud.
[0136] Newly developed wireless devices known as the cell wallet,
the palm wallet, the e-wallet, NavCheck, and the cam wallet can
also be used as part of this UPPD system 10. Although existing cell
phones and palm devices are not a novelty, the cell wallet, the
palm wallet, the e-wallet, and the cam wallet are novel in being
used in conjunction with the UPPD system 10.
[0137] These devices can be placed in a given vehicle and are known
as NavCheck devices. These NavCheck devices are unrelated to
NAVchek credit line checks of the Navy Federal Credit Union. For
the purposes of making every component user friendly, the NavCheck
device can be activated once the vehicle is started. Either a voice
or digital message can appear on the screen of the NavCheck device,
asking the vehicle owner to enter current written transaction
record parameters into the device, which could include the check
amount, check number, and to who the check was made out.
[0138] The customer account number and date could be preset in the
device for transmission of the data to the UPPD system 10, along
with providing the necessary data for the transaction record(s) of
the customer 30.
[0139] The NavCheck device may have the same capabilities as the
cell wallet, palm wallet, e-wallet and cam wallet. A simple plug-in
attachment to these devices would allow the download of data and
digitized pictures to the UPPD system 10. With a microcomputer
chip, a lost, stolen or forged check can also be located through
use of GPS utilizing the NavCheck device to locate the paper check
or card. These devices also allow ease for the customer 30 to use
electronic checks and transmit the check data to the UPPD system
10.
[0140] These devices may be configured with a refillable ball point
pen and an optical character reader to record all of the current
transaction record parameters of the check written. These devices
may also be configured to operate via voice recognition. As the
customer 30 writes the check, they simply state the current
transaction record parameters. The device may already have the
account number of the customer 30 and the date preset, and the
transaction record parameters may be entered into the device and a
signal sent daily downloading the wireless transaction record
parameters of these wallet devices to the UPPD system 10. These
devices may also be configured to have optical character
recognition scanning to enable the customer 30 to scan the check
that was just written, and/or digitize the check.
[0141] If a customer 30 elects not to carry a paper checkbook or
single paper check, they may utilize the option of converting to an
electronic check through these devices. The customer 30 may also
elect to key in the transaction record parameters by punching in
the correct data on a keypad. All methods on these devices enable
the customer 30 to provide the necessary transaction record
parameters to the UPPD system 10.
[0142] One of the more important features of the UPPD system 10 is
check verification services, which are outlined in FIGS. 3 and 4.
The check verification services feature allows the commercial
retail entity 50 to access the customer's 30 history of writing
checks, giving a negative or positive rating. This can be done in
addition to accessing the previously discussed transaction
record(s).
[0143] When a given commercial retail entity 50 is presented a
customer's check at the point of sale, the commercial retail entity
50 sends the UPPD system 10 a signal which is then sent to the
check verification services provider 90. The check verification
services provider 90 then accesses the customer's 30 check history
and gives a positive or negative rating based on whether there are
any checks that have not been honored. If there are any dishonored
checks written presented by the customer 30, a negative rating may
be given. If there are no dishonored checks, a positive rating may
be given.
[0144] Once the rating has been established, a signal is then sent
back to the UPPD system 10 and back to the commercial retail entity
50 wirelessly and/or non-wirelessly. It is up to the commercial
retail entity 50, what to do with this rating. In other words, it
is up to the commercial retail entity's 50 discretion whether to
accept a customer's 30 check based on this rating.
[0145] As illustrated in FIGS. 5A and 5B, each participant in the
check clearing process (payer customer 30, payee 100, payee bank
110, Federal Reserve 80, clearing bank 70, or payer bank 120),
participates in a UPPD method 130 used by a payer (customer) 30 for
maintaining check payment control and preventing check fraud. The
UPPD method 130 includes a series of steps in which payer 30
uploads check information to the UPPD system 10, payee 100 deposits
check in payee bank 110, payee bank 110 checks the check against
the UPPD database 20 in the UPPD system 10, check is deposited in
Federal Reserve 80 or clearing bank 70, which checks it against the
UPPD database 20, payer bank 120 receives check and checks it
against the UPPD database 20 and reports back to the UPPD system 10
that the check has been debited from payer's 30 account.
[0146] The first step of the UPPD method 130 is uploading
transaction record parameters into the UPPD system 10. As indicated
earlier, this information may include a check number, a check
amount, an account number, a routing number, a check date,
signature and signature digitalization and a payee 100. This
information is stored in the UPPD database 20 and is compared with
the information that is on the physical check as it runs through
each step of the check clearing process. The payer 30 also
physically writes the check and gives it to the payee 100 before
the transaction record parameters are uploaded into the UPPD system
10.
[0147] As touched on earlier, there are numerous ways that
transaction record parameters can be uploaded into the UPPD system
10. These include a Web form on the Internet, where an account
holder goes to a private Web page and enters the transaction record
parameters. There are also client application software programs
that can reside on an account holder's computer and transmit the
transaction record parameters via modem and a non-network
connection to the UPPD system 10. Voice activated client software
that receives transaction record parameters input via voice can
also be used and is known to those skilled in the related art.
[0148] Scanner technology attached to a computer that reads a check
and transmits data, as well as bar code readers, can also be used
to upload transaction record parameters. Wireless and/or
non-wireless data entry utilizing manual and/or vocal input can be
used to transmit data as well as 2-way paging devices, including
infrared and laser technologies. Even ordinary mail or delivery
services can be used to deliver data to the physical address of the
UPPD system 10 (to be entered by hand).
[0149] The next step of the UPPD method 130 involves the payee 100
receiving the physical check and depositing the check into his or
her bank account at the payee's bank 100. The payee's bank 100
utilizes optical character recognition, infrared, laser check
reader devices or magnetic ink character recognition technology to
scan the check and upload the check register check information to
the UPPD database 20 (usually via the Internet). This may normally
be done automatically with the polling software previously
discussed. The UPPD system 10 receives notification when the check
clears, as it may for each redundant step of the financial
transaction clearing process.
[0150] The next step of the UPPD method 130 involves the payee's
bank 100 checking and verifying the transaction record parameters
from the check with the transaction record parameters from the UPPD
database 20. This is done to detect fraudulent tampering or
unauthorized use of the check early in the financial transaction
clearing process and is an advantage over some of the current
methods outlined in the related art.
[0151] The next step of the UPPD method 130 involves the payee's
bank 100 depositing the check into a regional Federal Reserve
Clearing Division 80 or clearing house 70. Like the previous step
involving the payee's bank 100, the Federal Reserve 80 or clearing
house 70 checks the check against the UPPD system 10 for check
tampering or fraud again for added security and redundancy.
[0152] The next step of the UPPD method 130 involves the Federal
Reserve 80 or ACH 70 sending the check to the payer's bank 120. The
check is again checked and compared with the transaction record
parameters in the UPPD database 20 for check tampering and fraud by
the payer's bank 120, which approves the check for payment. The
check is then debited from the account of the payer 30 and the UPPD
system 10 is notified, which is the final step of the UPPD method
130.
[0153] Each participant in the check clearing process has an
opportunity to add to and receive information from the UPPD system
10. This information can be used for account verification and
notification of a check that was rejected due to unauthorized
issue, evidence of tampering or account owner cancellation. Status
of a check as to where it is in the clearing process is also
readily available. A check query notice is sent to a payer 30
whenever their records are accessed and a deposit acceptance notice
is sent to a payee 100 and payer 30 when a check is accepted.
[0154] It should be noted, as seen on FIGS. 6, 7, and 8 that the
Positive Pay exists today in the financial industry. However, it is
defined as bank specific Positive Pay. Bank specific Positive Pay
is nothing more than a customer 30 downloading his check register
to their bank 60 daily. Like living on a cul-de-sac, the customers
30 and the bank 60 only have communication with themselves and
anyone who is a neighbor customer only banking with that specific
bank on that system. If they live on the next block, next city, or
another state, they have no way to communicate. There is no
connectivity, as shown in FIGS. 7 and 8.
[0155] Another example of use for the UPPD system 10 is that the
declarations page of an insurance policy can be provided with a
series of numbers identical or similar to a MICR line across the
bottom of a check. Within this line would be the policy number,
issue date, policy amounts and effective dates. All of the
information would become similar to a check register and could be
downloaded from an insurance company to the UPPD database 20. The
positive match between the file accepted from the carrier issuing
the policy and that received from the agent keeps the policy from
being altered.
[0156] The UPPD system 10 also allows for complete connectivity,
allowing banks 60, commercial retail entities 50 and even customers
30 to communicate directly or indirectly through the UPPD database
20 by matching the positive data sent by the customer 30. The
customer 30 can upload his check register of written checks to the
bank 60 under bank specific Positive Pay, but is then restricted
from a universal verification for authenticity. As shown in FIG. 9,
under the UPPD system 10, the customer 30 uploads his check
register directly to the UPPD database 20. Any member commercial
retail entity 50 or contracted third party verifier 140 can send
check data to the UPPD database 20 for verification.
[0157] The signal passes through the match, authentication,
authorization, settlement, and clearing system 10 for matching. If
the signal matches the check register data present, the signal is
then sent to the customer's bank 40, where it checks for sufficient
funds, stop payments, liens, account status (open or closed), funds
available to cover any check (overdraft protection, etc.), and any
other verifications to provide a signal back through the UPPD
system 10, enroute to the querying party to either accept, reject
or not approve the check. If there has been a fraud, it is
discovered instantly. If there are insufficient funds, the bank may
elect to approve or reject based on its customer relationship.
[0158] As shown in FIG. 10, the UPPD system 10 may utilize stalled
debit or debit stall services 150 provided by the bank 60.
Normally, when a check is presented, based on the bank's 60
customer relationship or contractual relationship, the bank 60
would be allowed to debit the customer account immediately under
normal debit procedures.
[0159] The stalled debit 150 allows the institution to stall the
debit by issuing a credit to the commercial retail entity 50,
financial institution or party seeking the debit. The stalled debit
150 provides that the amount of the debit from a check, a debit
check or a debit card, allows the institution and their customer
the use of a float. The money in the account is held at the side
and awaits the normal check clearing, electronic, paper or plastic
procedure to take the allotted time by the Federal Reserve 80 to
allocate the cash from this transaction.
[0160] The debit stall 150 sets aside the money for the transaction
within the customer's bank 40. If the next check that comes in is
now over the balance within the account of the customer 30, the
institution, based on their customer relationship, can reject the
next transaction and state insufficient funds, or accept the
transaction and stall the debit based on overdraft protection from
charge cards, direct bank loans, zero balance account or any other
method the bank 40 feels necessary to provide to their customer 30.
As a result of the UPPD system 10, the check register, matching
data, verification data and authentication data may be archived and
stored for a desired period of time, e.g., seven years or the
like.
[0161] This is referred to herein as a Safety Check Deposit 160, as
depicted in FIG. 11. For a fee, the data may be stored and
recaptured for the customer 30 or customer bank 40 for retrieval on
disasters, catastrophes, bankruptcy, law suits, tax audits, probate
and estate re-creation, along with many more reasons the customer
30 might wish for check data retrieval. These may also be
subscribed to under the Fair Credit Reporting Act.
[0162] There are two tiers of tracking for checks, official items,
gift certificates, money orders and other types of data, such as
pharmaceutical data, medical data, insurance data and other
financial services. The first tier, which utilizes TrackBack
software, has the UPPD system 10 track and search for outstanding
codes, numbers and encrypted data on an item waiting to be
redeemed, cashed or provided at a point of presentment.
[0163] The TrackBack software provides exclusive use to the
customer 30 in locating lost, stolen, misplaced items, or items not
presented and that remain outstanding. The second tier of the
TrackBack software is utilized for locating instruments through use
of GPS. Additionally, instruments of any value may be located in
the event of stolen, lost, fraudulent or forged documents. This is
also depicted in FIG. 12.
[0164] As shown in FIG. 13, a complete historical behavior of
customer 30 check writing habits may be compiled to provide another
level of security. If a customer writes twenty checks a month, the
customer's behavior matrix 180 may track this, much like a credit
card. If a large check arises or checks appear from different parts
of the country outside a customer's 30 residence, an alert may
prompt an abnormality from the customer's behavior matrix 180 and
trigger a confirmation that any changes are not security breaches
on historical data compiled.
[0165] With the historical check writing data compiled from the
UPPD database 20 and the customer's behavior matrix 180, a complete
credit history 190 may be generated. The UPPD database 20 may
compile credit histories for the proper parties, including the
customer's 30 usage for fraud, insufficient funds, late pays, etc.
This also meets the requirements for the Fair Credit Reporting
Act.
[0166] The UPPD system 10 can also operate in a peer to peer mode.
This allows a financial institution, ATM network 55 or other entity
to house a host or server. This host/server configuration would
allow an institution the ability to secure data from their customer
30 and pass this directly to the UPPD system 10. This allows the
institution the ability to house their own customer accounts
securely on their own server.
[0167] A peer to peer mode also allows the entity the option to
carry the data load and have an off-site source UPPD system 10 for
back-up and catastrophe handling, along with connectivity from peer
to peer. All of the transmissions would still occur as stated to
allow the connectivity to multiple sites in lieu of being bank
specific.
[0168] The term "reverse pay" or "negative pay" is similar to the
UPPD process, except that the process is reversed with the customer
30 that downloads their check register. Like "Positive Pay",
reverse pay is utilized as bank specific, and thus it has no
connectivity. It does not allow point A to communicate beyond point
B through the UPPD database 20 and the many networks connecting all
points to the UPPD database 20.
[0169] With reverse pay or negative pay, not only does the account
keep a list of issued checks, through their check register, but the
UPPD database 20 keeps a list of the customers' issued checks. When
a check is presented for payment and clears through the Federal
Reserve 80, the Federal Reserve 80 prepares a file of the dollar
amounts of the checks, serial numbers and account numbers, and
sends the file to the financial institution on a bank specific
reverse pay format.
[0170] In reverse pay (bank specific), the financial institution
sends the file to the customer 30, where the customer 30 compares
the information to its internal records. The customer 30 lets the
financial institution know which checks match its internal
information and the financial institutions pays those items. The
financial institution then researches the checks that do not match,
correcting any encoding errors and any misreads and determines if
the items are fraudulent. The financial institution pays only the
real or true exceptions that can be reconciled with the customers'
files.
[0171] Universal reverse pay or universal negative pay takes this
reverse match to an even higher level of security by having all
pass through the UPPD database 20 back to the bank 60 and the
customer 30 and uses either the debit stall or stalled debit 150 to
hold funds, but assure the debtor that the funds are not
insufficient funds. They are in a stalled debit 150 stall and are
transferred once the check goes through the regular and normal
clearing process and funds availability requirements. The debtor to
a debit plastic card or debit paper check can be given a credit
slip on verification of authenticity.
[0172] A check writing software package, known as DirectCheck, is
provided to the bank 60 and its customers 30, and utilizes the
match, authentication, authorization, settlement, and clearing
system 10 or the reverse pay/negative pay module, allowing
connectivity to various networks, communications devices and the
Internet. This DirectCheck software runs on MICR laser printers of
various manufacturers and provide security features in printing on
blank secure paper checks, official items, financial items and
other documents. The TrackBack software may also be included in the
DirectCheck software.
[0173] Customers 30 provide signatures for official items to be
used by the UPPD system 10. The signatures are digitized and
recognition software verifies signature matrixes for any
abnormalities.
[0174] The UPPD system 10 may be configured for enhanced security
by associating transaction record parameters for customers to the
UPPD system 10 via biometrics. Biometrics is the technology of
personal identification through validation of an individual's
unique physical characteristics, such as DNA, facial structure,
iris, retina, finger print(s), voice, signature recognition,
etc.
[0175] The UPPD system 10 also has the ability to allow or provide
imaged, digitized, or electronic conversions of checks, debit
cards, debit checks, plastic check cards, smartcards, and paper
checks from devices included within the UPPD system 10. The UPPD
system 10 may issue or accept digitized checks for clearing,
matching, verifying and authenticating. Information such as check
amounts, coding, routing numbers, check dates, signatures,
digitized signatures, matrixes and account numbers may be verified
for a positive match.
[0176] The UPPD system 10 provides that check readers continue in
the retail-marketplace, as has been custom. It is the intent of the
check readers to be placed at every teller station and on the ATM
network stations 55. For readers that provide check data,
digitalization may be utilized to place the readers at every
possible location accepting checks, debit cards and paper debit
checks along with the deposit of any other official item. These
readers transmit, via a purchased direct line, information to the
UPPD system 10. The UPPD system 10 may utilize existing networks,
such as ATMs 55, AT&T frame systems, automated clearing house
70 networks, credit card networks and third parties 140, such as
TeleCheck, Equifax, and CrossChecks.
[0177] Electronic foils can be embedded within plastic and paper
instruments to transmit the written material data from a customer
30. Foils and chips within the instruments may provide additional
security with encrypted serialized match numbers. The UPPD system
10 requires check readers and credit card readers to transmit a
personalized digitized signature band or wavelength to any waiting
devices for data recovery and instant transmission. These chips and
foils may be programmable and configured for use with GPS. A
special watermark or hologram can also be placed on these
instruments for further security.
[0178] A customer 30 can also receive rewards for proper and timely
exchange of pertinent data. These rewards can include frequent
flyer miles as well as travel or other merchandise.
[0179] The UPPD system 10 may also provide the capturing and
storing of electronic presentation or payment of checks. This
includes capturing and storing electronic images of checks. By
matching the UPPD system 10 protocol, these checks allow financial
institutions to make payment decisions in real-time by getting
access over the Internet, peer to peer transmissions, modems,
landlines, wireless systems, check readers and other communications
devices, as shown in FIG. 14.
[0180] The electronic processing of the UPPD system 10 also allows
customers 30 to view their check register immediately in real-time
to determine exceptions, stop pays, insufficient funds, missed
items, cancelled checks and voids. A customer 30 writes a check at
the point of purchase, point of encashment and/or point of
presentment and the check information, which can be digitized,
imaged or copied, is sent to the UPPD system 10 for authorization
and authentication. This same process can also be done through a
third party 140 sending the check data to the UPPD system 10.
[0181] Once the transaction is completed and approved, the customer
30 signs an authorization slip. The customer 30 is provided with a
copy of the authorization slip stamped or printed on the back of
the check or debit check as "cancelled or voided". The debit check
or check is cancelled and can be returned to the customer 30 on the
spot. Since the checks have been converted electronically, they can
be transmitted from either the commercial retail entity 50 directly
to the merchant bank or through the UPPD system 10, to provide a
batch of electronically authenticated electronic checks for deposit
and use of either the ACH 70, EFT and stalled debits 150 by the
financial institution to the account of the customer 30.
[0182] As a result, check clearing is done instantly rather than
through the cumbersome check clearing system that currently exists.
The cancelled check image, digitalization or data from the check
can be archived for the customer 30, the bank 60 and commercial
retail entity 50 as described in a universal Positive Pay,
universal reverse pay, or universal negative pay system. This
provides the UPPD system 10 the customer's check writing behavioral
matrix 180 and the credit history 190 gathered on the customer 30,
and provides the UPPD system 10 with the ability to guarantee
payment of check funds.
[0183] Additionally, the UPPD system 10 has the ability to accept
relationships with third parties 140, bank clearing houses 70,
ATMs, check guarantee firms and more. This further allows
additional security, lower check fees, lower check clearing fees,
returned checks, and allows all parties to settle and balance,
including real-time check reconciliation for the customer 30, the
commercial retail entity 50, and the bank 60.
[0184] This also allows the UPPD system 10, the bank member 60 and
the customer 30 the ability to guarantee checks for ISF and more
importantly, authentication and detection of fraud on debit cards,
debit checks, plastic check cards, smart check cards, payroll
cards, cash cards, and paper checks instantly. This allows safer
use and guarantees imaged, digitized, and electronic check
conversions to all parties involved.
[0185] The UPPD system 10 allows a customer 30 and bank member 60
to inventory and reconcile in real-time. Once the check register or
any positive match information is provided, the customer 30
expedites the check related credit postings and the check return
process. This allows same day instant clearing and reconciliation
on paid checks. Gift certificates and money orders may be treated
in the same fashion as a check under the UPPD system 10. The
customer 30 uploads the creation of this real-time or at a
specified time daily. The UPPD system 10 treats any fraud or ISF
issues just like any other official item.
[0186] Through the UPPD system 10, digitized, electronic and paper
items are cleared in the same fashion as clearing items similar to
the Federal Reserve 80 or a third party check clearing house 70 or
bank. The UPPD system 10 provides the proper platform and protocol
for clearing any items for both a positive match, an universal
reverse pay match and creation of a negative file. The negative
file is a file compiling credit history on the customer 30, along
with his historical check writing behavior.
[0187] There are thousands of different types of accounting
software packages being utilized by financial institutions,
commercial accounts, retail establishments and merchants. The UPPD
system 10, universal reverse pay and universal negative pay systems
can be provided commercially and may also be available by
downloading from the Internet for a fee. These systems may be used
by or connected to for personal use as well as commercial use by
any entity desiring complete connectivity and accountability to a
standardized form of accounting procedures that allow further
security, easier connectivity and a standard protocol.
[0188] In FIGS. 15A and 15B, bank specific Positive Pay processes
200 are shown that may be used with the UPPD processes of the
invention. Initially, the payer/payee provides check issue data 202
(e.g., the date, amount, check number, MICR, bank number, routing
number, payable to the order of, any desirable security features,
etc.). All gathered data is then submitted for payment and is then
compared to the check issue data 204. Any and all exception items
can be identified and physically out sorted to remedy 206. Once
exception items are identified, the payer/payee are notified of any
incurable items where a NO PAY/PAY decision is made 208. Once the
incurable items are identified, the payer/payee is notified. The
items are either paid or returned pursuant to the payer/payee
instructions 210. A payer/payee UPPD Plus Pay or Issue File is then
created 220. The Issue File may then be uploaded to the UPPD
database according to the invention. As shown in FIGS. 15C-15K,
once the Issue File is uploaded to the UPPD, various UPPD options
240, 242, 244, 246 occur dependent on users 224, 226, 228, 230,
250, 252, 260, 270, 272, or 274.
[0189] The functional diagram 300 in FIG. 16 illustrates how the
UPPD 314 is configured to interact with bank databases 312, and
customers 314. The functional diagram 400 in FIG. 17 illustrates
how the UPPD database 310 uploads and/or downloads data with users
412 and 414 that may be interconnected with a fire wall 416 of
shared data.
[0190] The functional diagram 500 in FIG. 18 illustrates how the
UPPD database 510 is interconnected with a customer insufficient
funds overdraft history 520, a customer behavior matrix 522, a
customer evaluation risk matrix for bank 524, a customer bank 530,
a customer behavior matrix 540, secure a check software 550, and
customer check writing and check register 560.
[0191] A functional diagram 600 of an electronic check recovery
UPPD process according to the present invention is shown in FIG.
19. A functional diagram 1050 of a file download, lockbox, and drop
box. UPPD process according to the present invention is shown in
FIG. 20. Flow charts of file download, lockbox, and drip box UPPD
processes 700 and 710 according to the present invention are shown,
respectively, in FIGS. 21A and 21B.
[0192] The file download, lockbox, and drip box UPPD process 700
illustrates how a document correspondence arrives and the payment
is presorted. Correspondence may be presorted by the payer, the
payee, bank(s), institution(s), company(s), etc. Electronic,
truncated, traditional check, ACH, EFT, and/or other means may be
utilized and/or considered as document correspondence, as shown in
FIG. 21B. Correspondence may also be sorted based on the amount
due, the late amount, multiple payment and/or no coupon categories.
The payment is then captured by payment type and a daily capture is
made. At the end of the day, a lockbox drop box may be loaded, and
the lockbox may be archived.
[0193] Once the lockbox is archived the payer and/or payee customer
has access to the lockbox archive. The lockbox archive may also be
backed up on any magnetic, optic, and/or electronic memory device
as desired, such as CD ROM, tape, the Internet, computer
network(s), etc. The backups may be reviewed to verify the
integrity of the back up. If a backup failure occurs and/or is
detected, a failure report may be generated for users, and/or the
backup may be corrected based on the failure. The final backup may
be checked and backup preparation for the next day may be
initiated.
[0194] The daily data capture may then be processed by a deposit
correction system to determine whether corrections are required
and/or desired in accordance with any predetermined conditions.
Deposit and/or batch reports may be generated and may be reviewed.
Deposits are then balanced and stops are pulled from the lockbox to
enable cash letters to be prepared. Payment is then made and clean
up and preparation is then made for the next day.
[0195] When document correspondence arrives, company return
correspondence may be sorted by the payer, the payee, bank(s),
institution(s), company(s), etc. The service provider, the payer,
the payee, bank(s), institution(s), and/or company(s) envelope(s)
may then be sent.
[0196] In FIGS. 22A, 22B, 22C, and 22D, bank specific Positive Pay
processes 800 are shown in use with UPPD processes of the
invention. Initially, the payer/payee provides check issue data 802
(e.g., the date, amount, check number, MICR, bank number, routing
number, payable to the order of, any desirable security features,
etc.). All gathered data is then submitted for payment and is then
compared to the check issue data 804. Any and all exception items
can be identified and physically out sorted to remedy 806. Once
exception items are identified, the payer/payee are notified of any
incurable items where a NO PAY/PAY decision is made 808. Once the
incurable items are identified, the payer/payee is notified. The
items are either paid or returned pursuant to the payer/payee
instructions 810. A payer/payee UPPD Plus Pay or Issue File is then
created 820. The Issue File may then be uploaded to a UPPD database
according to the invention.
[0197] Once the Issue File is uploaded to the UPPD database 820,
the Issue File may be uploaded and/or downloaded from the
payer/payee bank, uploaded and/or directly from the payer/payee,
uploaded and/or downloaded from a perimeter of network(s),
disparate database(s), disparate network(s), retail(s),
merchant(s), institution(s), and company(s). FIG. 22C shows how any
and/or all networks may be intereconnected.
[0198] Users may include the payer/payee bank 830, retail(s) 854,
the payee/payer 856, bank(s), ATM(s), localized network of
commercial/personal entities 860, the drawer/drawer bank 880. Data
may include payee information, data, biometrics 840, payer
information, data, biometrics 842, etc. Interconnection may occur
via a network, PC to PC, business to business, peer to peer 852, a
switch network, disparate, localized, or full scale network 870.
FIGS. 23A, 23B, 23C, 23D, and 23E show flow charts 900 of UPPD
processes according to the present invention. Initially, the
payer/payee provides check issue data 902 (e.g., the date, amount,
check number, MICR, bank number, routing number, payable to the
order of, any desirable security features, etc.). All gathered data
is then submitted for payment and is then compared to the check
issue data 904. Any and all exception items can be identified and
physically out sorted to remedy 906. Once exception items are
identified, the payer/payee are notified of any incurable items
where a NO PAY/PAY decision is made 908. Once the incurable items
are identified, the payer/payee is notified. The items are either
paid or returned pursuant to the payer/payee instructions 910. FIG.
23B shows how UPPD transaction records of financial transactions
may correspond to any type of transaction account, such as a
checking account, a savings account, a credit card account, a money
market account, a liability account, a bills/payable account, an
asset account, an invoice/receivables account, a cash account, an
insurance policy account, an account for a will, an account for a
trust, or any other financial account. In a similar manner, FIG.
23C shows how UPPD processes for use with reverse pay situations
that deal with transaction records of financial transactions
corresponding to any type of transaction account. FIG. 23D shows
UPPD processes for any type of situation (e.g., Positive Pay,
reverse pay, negative pay, etc.). FIG. 23E illustrates UPPD
processes for networks with ATM systems.
[0199] The UPPD processes may be configured to receive origination
attributes associated with a transaction instrument to the UPPD
database and store the received origination attributes in the UPPD
database. This enables the birth of the transaction instrument,
e.g., the document, official item, debit card, debit check,
smartcard, check(s) for the payer/payee, drawer/drawee bank(s),
institution(s), company(s), origination attributes associated with
the origination of the financial instrument to be uploaded from a
paper mill, manufacturer, distributor, etc. The origination
attributes can include the date of creation, the time of creation,
security features, biometrics, plant location, the pressman, the
date shipped, etc., and provides a payer/payee standing file
residing within the UPPD database that is readable by all parties.
Generally, the origination attributes may be an origination entity,
an origination location, an origination date, an origination time,
security features, biometrics, origination personnel, origination
shipping date, etc. Transaction records for any financial
transaction may also be processed with the UPPD software.
[0200] Functional diagrams 1000 of UPPD processes according to the
present invention are shown in FIGS. 24A, 24B, 24C, 24D, 24E, and
24F. These diagrams 1000 show the use of truncation banks with the
UPPD system and what occurs when the payer presents a transaction
instrument at a POS financial transaction. FIG. 24D illustrates
what occurs when the UPPD checks whether a retailer is using a UPPD
payroll check.
[0201] A functional diagram 1050 of a UPPD process regarding an
electronic check presentment according to the present invention is
shown in FIG. 25. Functional diagrams 1100 of UPPD processes
regarding POE, POP, and POS financial transactions according to the
present invention are shown in FIGS. 26A, 26B, 26C, 26D, and 26E. A
functional diagram 1200 of a UPPD system according to the present
invention is shown in FIG. 27. Functional diagrams 1300 and 1310 of
UPPD processes according to the present invention are shown,
respectively, in FIGS. 28A and 28B.
[0202] A functional diagram 1400 of a point of sale transaction
utilizing a UPPD system according to the present invention is shown
in FIG. 29. This diagram 1400 illustrates the process that occurs
when a POS, POE, or POP terminal asks whether a bank associated
with a financial instrument presented for a POS, POE, or POP
financial transaction is a UPPD member. A functional diagram 1500
of a UPPD system regarding ACH, EFT, or other money transfer
processes according to the present invention is shown in FIG. 30. A
functional diagram 1600 of a UPPD system regarding Check 21,
wireless, imaging, ACH, EFT, etc., according to the present
invention is shown in FIG. 31.
[0203] Functional diagrams 1700, 1710, 1720, 1730, 1740, 1750 of
UPPD processes regarding transparency according to the present
invention are shown, respectively, in FIGS. 32A, 32B, 32C, 32D,
32E, and 32F. A functional diagram 1800 of the use of a personal
identification number (PIN) with a UPPD system according to the
present invention is shown in FIG. 33. Functional diagrams 1900 and
1910 of UPPD processes according to the present invention are
shown, respectively, in FIGS. 34A and 34B.
[0204] Diagrams 2000 and 2010 of security measures for use with a
UPPD system according to the present invention are shown,
respectively, in FIGS. 35A and 35B. A functional diagram 2100 of
biometric security measures for use with a UPPD system according to
the present invention is shown in FIG. 36. A functional diagram
2200 of a UPPD system according to the present invention is shown
in FIG. 37.
[0205] A UPPD system, method, and/or computer useable medium
according to the invention can reposition the way commercial and
personal checks, debit cards, and debit check are processed. The
UPPD system, method, and/or computer useable medium eliminates the
potential fraud associated with these checks, but can drive down
transaction costs associated with such checks, to the benefit of
all parties involved in the process.
[0206] The UPPD system, method, and/or computer useable medium can,
thru third party vendors currently in business, verify the validity
of a commercial check, at the point of sale, and move the
associated funds electronically, avoiding both paper processing,
and the Federal Reserve ACH. In doing so, fraud is eliminated and
transaction costs are greatly reduced. Parties that can benefit
through use of the UPPD database include the merchant, the check
guarantee vendor, the check issuer, the on-us bank, etc.
[0207] By providing service via the UPPD system, merchants can now
take commercial checks as payment for goods. This brings customers
into their businesses, and increases sales, without the risk of
loss. Given that the checks can be terminated at the point of sale,
thru existing equipment, the cost for depositing that item goes
down, saving the merchants depository fees, as well as staff time
in preparing and balancing check deposits.
[0208] Most check guarantee vendors charge their merchants on a per
transaction basis. By adding commercial checks to the offering via
the UPPD system, the volume of checks guaranteed may increase,
resulting in increased revenue to the check guarantee provider.
[0209] The UPPD system offers companies issuing checks an increased
likelihood that any attempts at defrauding the company thru check
manipulation may be stopped at the point of encashment.
Additionally, since the checks are cleared electronically, cost is
driven from the transaction, giving the check issuing company an
opportunity for a reduction in bank related fees.
[0210] Since the checks of an on-us bank may be verified at the
point of encashment with the UPPD system, the potential for fraud
is eliminated, reducing exposure for both the bank, and the banks
check issuing client. Additionally, since the check is processed
entirely by the UPPD system, the bank may not incur either paper
processing costs, or ACH fees. This allows the bank the option of
increased margin, while passing a savings to its client.
[0211] The inventive UPPD system, method, and/or computer useable
medium is the first technology to authenticate a paper check for
all processes within a financial institution's check clearing
chain. Any point along the clearing chain that finds a discrepancy
can stop the check process indefinitely or until the discrepancy
has been validated. To make participation easy, the UPPD system,
method, and/or computer useable medium relies on an Issue File
format which coincides with the Positive Pay file format, as well
as enables the use of additional features. When the account holder
produces checks, the UPPD database can be updated instantly with
the correct check information. This way the UPPD system, method,
and/or computer useable medium offers far greater check security
for the most common types of check fraud--the forged or stolen
check.
[0212] Since the UPPD system, method, and/or computer useable
medium can eliminate the clearing chain, it can provide an even
greater level of protection against check and debit check fraud.
For one of many examples, when a UPPD Check Issuer, located in
Houston, prints checks, an electronic record of each check is
loaded into the UPPD. If one of those checks is presented at Home
Depot in Chicago, then several scenarios could occur.
[0213] If Home Depot is not a member of the UPPD network, they then
must make a blind decision on whether to cash the check or not, and
wait a number of days to learn whether the check was valid. If Home
Depot is a UPPD member, they would scan the check, and the
electronic record would be transmitted to the UPPD database, and
matched against the original check issue, which could yield the
following results: (1) The match is successful, and Home Depot can
accept the check as payment for the merchandise; (2) The match is
unsuccessful, and Home Depot rejects the check, and avoids a loss
from a fraudulent instrument.
[0214] Depending on the level of matching information, the Check
Issuer, and his bank can receive warnings of attempted encashments
against the bank and the account. By building a history of
attempted fraudulent encashments, the UPPD system, method, and/or
computer useable medium can become instrumental in the pinpointing
of patterns, and be able to predict future attempts. This
information will become valuable in the eventual identification of
habitual perpetrators, and the elimination fraud rings.
[0215] With the UPPD system, method, and/or computer useable
medium, as soon as the fraud is identified, the UPPD database will
be updated and the check stopped before it clears, protecting the
account holders' funds.
[0216] UPPD offers the greatest possibility to eliminate check
fraud over any other check fraud detection system. As the numbers
of participating financial institutions and merchants grow, the
possibility of check fraud is diminished. This is based on the fact
that the UPPD database provides a single repository of information
for all financial institutions and check issuers to populate, and
all merchants to use to validate the authenticity of the check. The
following is a simple example of how the UPPD system, method,
and/or computer useable medium would work.
[0217] Via existing technology using traditional phone, data lines
or over the Internet, a business or other check issuing entity may
routinely send to the UPPD system an Issue File that provides
information regarding checks written against their account. The
file includes a record of each check's issue date, amount, check
number, account number, and the payee name. When the check is
presented for encashment, the UPPD system can be accessed to verify
that the information on the check matches the Issue File downloaded
by the check issuer to the UPPD system. If the information is
inconsistent or unavailable, the UPPD system can notify the
requestor. If the check has been forged or altered, the payment
process can be interrupted and the loss avoided.
[0218] While the invention has been described with references to
its preferred embodiment, it will be understood by those skilled in
the art that various changes may be made and equivalents may be
substituted for elements thereof without departing from the true
spirit and scope of the invention. In addition, many modifications
may be made to adapt a particular situation or material to the
teaching of the invention without departing from its essential
teachings.
* * * * *